Template-type: ReDIF-Paper 1.0
Author-Name: Pisey Khin
Author-Name-First: Pisey
Author-Name-Last: Khin
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Author-Name: Ryuta Ray Kato
Author-Name-First: Ryuta
Author-Name-Last: Kato
Author-Email: kato@iuj.ac.jp
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Title: The Impact of the Global Economic Crisis on Cambodia
Abstract: We numerically examine the impact of the global economic crisis on the Cambodian garment exports as well as its economy by using the conventional CGE model. A seminal aspect of the paper is that we have successfully estimated the curvature of the CET and CES production functions for the Cambodian economy, by using the time series regression method. One of our most striking results indicates that the welfare cost of the impact of the crisis at least reaches 281 million US dollars, thus resulting in a 0.3 percent decrease in GDP with 20.8 thousand direct job losses in the garment industry. Our simulation results also show that the currently ongoing policy in Cambodia only reduces the negative impact of the crisis by 32 million US dollars, and we propose an expansion of the government budget of 304 million US dollars, in order to neutralize the negative impact of the global economic crisis on the Cambodian economy.
Classification-JEL: C32, C68, D57, D58, D60, E17, F14, F17
Length: 33 pages
Creation-Date: 2010-08
Number: EMS_2010_10
File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2010_10.pdf
File-Format: Application/pdf
File-Function: First version, 2010
File-Size: 332KB
Keywords: Cambodia, Computable General Equilibrium (CGE) Model, Global Economic Crisis, Garment Industry, Welfare, Simulation
Handle: RePEc:iuj:wpaper:EMS_2010_10