首页|The Analysis of Export Competition and Determinants of Cambodian Clothing and Footwear
The Analysis of Export Competition and Determinants of Cambodian Clothing and Footwear
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The thesis is aimed to investigate the Cambodian clothing and footwear export competition by using the Balassa's Revealed Comparative Advantage (RCA) index and to examine the determinants which influence Cambodian clothing (SITC 84) and footwear (SITC 85) exports flows under a framework of Gravity Model with its main trading partners.Therefore, the panel dataset with 32 cross-section countries including Cambodia from the period 2000 to 2013 is employed in the analysis while Pooled OLS, Fixed Effect, and Random Effect methods are adopted to obtain the coefficients of research findings. Comparing the RCA index of Cambodia's clothing product to some selected Asian clothing exporters, we found that Cambodian clothing product does have a revealed comparative advantage in international competitiveness since the value of RCA index of Cambodia's clothing is relatively high degree (i.e., greater than 1).This indicates that Cambodian clothing industry has significant potential for growth over more than a decade from 2000 to 2013.In contrast, the RCA index of Cambodia's footwear export does not have a relatively high degree of revealed comparative advantage in international competitiveness from 2000 to 2009, but the index started to increase rapidly from 2010 to 2013.This implied that the position of Cambodian footwear industry or footwear product becomes strongly in international competitiveness.Once again, the paper develops basic and augmented Gravity Models, which attempted to estimate the impacts of economic size: GDP and GDP per capita: income; factor endowment: population; geographical distance, and other controlled dummy variables that are influential in the exports of Cambodia's clothing and footwear products.The results from applying the basic and augmented Gravity Models confirmed that geographical distance and economic sizes of Cambodia and its importers' countries significantly affect the pattern of Cambodia's clothing and footwear product exportgrowth.Moreover, based on the test of Linder's hypothesis, we found that Cambodia has a propensity to export to partners with a similar level of per capita income.Finally, we recommend and suggest for improvement of the better policy makers for economy and trade of Cambodia.
KHUT RAVY
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RCA Index Gravity Model Cambodian Clothing and Footwea
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