Scandinavian Working Papers in Economics

EIJS Working Paper Series,
Stockholm School of Economics, The European Institute of Japanese Studies

No 209: THE CAMBODIAN ECONOMY: READY FOR TAKE-OFF?

Fredrik Sjöholm () and Örjan Sjöberg ()
Additional contact information
Fredrik Sjöholm: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden
Örjan Sjöberg: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

Abstract: Cambodia is facing the familiar problem of achieving sustained rates of economic growth that could help it alleviate widespread poverty. Against the background of some encouraging developments, and quite a few that are not equally reassuring, we argue that any push for development needs to consider both agriculture and industry. This is so as both labour absorption, primarily in secondary sector activities, and productivity growth in agriculture are necessary to lift large segments of the population out of the poverty associated with subsistence agriculture, landlessness and informal sector activities. Given that the major success story of the past decade, the garments and textile industry, is under threat, we conclude that Cambodia is yet to achieve an economic take off.

Keywords: Cambodia; economic development; agriculture; industry

JEL-codes: O13; O14; O53

31 pages, April 1, 2005

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