Following definitions and a description of major trends, this section of the paper will focus on the following areas: • key concepts and insights from the scholarly literature useful as a reference framework for the analysis of FDI, GVCs and economic development in Cambodia • strengths and weaknesses of attracting FDI and integrating in the global economy through FDI, and basic framework condition. [...] General trends in the past 20 years Since the 2000s, there have been rapid and drastic shifts in the global productive capital flows from the global North to emerging and developing economies in different parts of the world (e.g., Padilla-Perez and Gomes Nogueira 2016; UNCTAD 2018), which has reversed and possibly ended once-and-for-all the supremacy of investors from the global North. [...] As Lipsey (2002,1) comments on the benefits and costs of FDI, “Much of the impact is from the transfer of knowledge of world markets and of ways of fitting into worldwide 4 20 Years of FDI in Cambodia: Towards Upper Middle-Income Status and Beyond production networks, not visible in standard productivity measurements.” Hansen and Rand (2006) further emphasise that much of the benefits of inward FD. [...] Overview Over the last two decades, Cambodia has undergone a process of rapid industrialisation and diversification, with a contribution of the agriculture sector to GDP close to 50 percent at the end of the 1990s shifting to around 22 percent of GDP in 2019, and the role of the garment sector increasing from 17 percent to 22 percent over the same period; in the meantime, other sectors have become. [...] The strong and growing integration of Cambodia in the wider Asian macro-region is evident: Japan, China and Singapore record the biggest increases in investment flows to Cambodia in the second decade, all overtaking Malaysia – the largest source during the whole 20 years observed – both in terms of FDI value and job creation.
- Pages
- 68
- Published in
- Cambodia
Table of Contents
- CDRI Working Paper Series No. 149 3
- Chief Editor Managing Editor Associate Editors 4
- Table of contents 5
- List of figures tables and maps 6
- Acknowledgements 7
- Acronyms and abbreviations 8
- Abstract 10
- 1. Introduction 11
- 2. Insights from the literature 12
- 2.1.1. Overview 12
- 2.1.2. Definitions and key concepts 12
- 2.1.3. General trends in the past 20 years 14
- 2.1.4. The impact of FDI in developing economies 14
- 2.3.1. Overview 20
- 2.3.2. FDI in Cambodia Empirical evidence in the literature 21
- 3. Cambodias policy framework for FDI 24
- 4. FDI in Cambodia Trends over the two decades 2003-2022 27
- 4.1.1. General trends 27
- 4.1.2. FDI sectors and GVC stages 29
- 4.1.3. Geography of origin 34
- 4.1.4. Geography of destination Subnational distribution 37
- 5. Policy recommendations 41
- Strengths 43
- Weaknesses 43
- Opportunitiesthreats 44
- References 49
- Appendices 57
- CDRI Working paper series 63
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