FDI, Services Liberalisation, and Logistics Development in Cambodia

Vannarith Chheang

No DP-2016-39, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper reviews Cambodia's economic development based on flows of foreign direct investment (FDI) and services sector liberalisation. It uses Cambodia's logistics industry as a case study. Services sector liberalisation in Cambodia has been mainly driven by its commitments under the World Trade Organization (WTO) framework and the ASEAN Framework Agreement on Services (AFAS). Logistics is one of the key contributors to economic growth and competitiveness. To improve the logistics sector, Cambodia needs to develop a comprehensive master plan and national council on logistics to overcome the main issues and challenges such as corruption and informal payments, lack of institutional capacity and coordination, low-quality transport infrastructure, weak urban-rural and cross-border transport networks, limited participation of the private sector, lack of skilled human resources, and low public and private investments. Promoting healthy competition in logistics and removing the impediments to investment are vital to improving the quality and coverage of logistics services.

Keywords: Foreign direct investment; logistics; services; liberalisation; ASEAN; WTO (search for similar items in EconPapers)
JEL-codes: F21 L80 L90 (search for similar items in EconPapers)
Pages: 43 pages.
Date: 2017-03
New Economics Papers: this item is included in nep-int, nep-sea and nep-tre
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