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The Driving Forces Underlying the Growth of Total Factor Productivity in Cambodia

  • Bory Seng

    ()

    (Technology Management, Economics, and Policy Program (TEMEP), Seoul National University)

This case study explores the driving force of the productivity growth in Cambodia, one of the least developed countries. Quantitative and qualitative studies were used to analyze the source and impact of the input factors on the nation¡¯s productivity growth. For a quantitative study, a small panel data set was formed that allowed the adoption of a simple linear regression and a non-parametric approach of divisia index as the main methodologies for the quantitative analysis. Beside the conventional inputs of the growth model, the study selected the energy consumption and the aid and investment in the telecommunication sector to be additional factors of the growth. The selection of additional factors was based on the consistent precedents in literature that highlighted the important of each variable, and the availability of the data and the background of the country. The properties of the estimation were used for another empirical step to examine Total Factor Productivity (TFP), which in this study is a proxy of the national economic growth. The focus of the study was to explore the direct contribution factors of the productivity in Cambodia by performing the second regression of TFP. For qualitative analysis, a successful country case will be reviewed and used as development references. Referring to the results of both analyses, suggestions and policy implications are offered.

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File URL: ftp://147.46.237.98/DP-68.pdf
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Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 201068.

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Length: 26 pages
Date of creation: Oct 2010
Date of revision: Oct 2010
Handle: RePEc:snv:dp2009:201068
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  1. CUYVERS, Ludo & SOENG, Reth & PLASMANS, Joseph & VAN DEN BULCKE, Daniël, 2008. "Productivity spillovers from foreign direct investment in the Cambodian manufacturing sector: Evidence from establishment-level data," Working Papers 2008004, University of Antwerp, Faculty of Applied Economics.
  2. Jalava, Jukka & Pohjola, Matti, 0. "ICT as a source of output and productivity growth in Finland," Telecommunications Policy, Elsevier, vol. 31(8-9), pages 463-472, September.
  3. Jayson W. Richardson, 2008. "ICT in Education Reform in Cambodia: Problems, Politics, and Policies Impacting Implementation," Information Technologies and International Development, MIT Press, vol. 4(4), pages 67-82, October/J.
  4. Nick Bloom & Raffaella Sadun & John Van Reenen, 2007. "Americans Do I.T. Better: US Multinationals and the Productivity Miracle," CEP Discussion Papers dp0788, Centre for Economic Performance, LSE.
  5. Inha Oh & Jeong-Dong Lee & Almas Heshmati, 2008. "Total Factor Productivity in Korean Manufacturing Industries," Global Economic Review, Taylor & Francis Journals, vol. 37(1), pages 23-50.
  6. Almas Heshmati, 1996. "On the single and multiple time trends representation of technical change," Applied Economics Letters, Taylor & Francis Journals, vol. 3(8), pages 495-499.
  7. Thomas Barnebeck Andersen & Carl-Johan Dalgaard, 2006. "Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity," Discussion Papers 06-04, University of Copenhagen. Department of Economics.
  8. Rao, B. Bhaskara & Vadlamannati, Krishna Chaitanya, 2009. "Growth Effects of Globalization in the Low Income African Countries: A Systems GMM Panel Data Approach," MPRA Paper 16595, University Library of Munich, Germany.
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