Cambodia’s Comparative Advantage Patterns and Trade Structure from 1985 to 2010

This paper examines the structure of international trade and evaluates the patterns of Cambodia’s comparative advantage from 1985 to 2010 using the Revealed Comparative Advantage (RCA) index. It is found that: (i) Cambodia’s exports were initially concentrated in some primary goods and basic manufactures; (ii) resource-based exports shifted to light and labour-intensive industrial products in the mid-1990s; (iii) trade diversification is still low despite government efforts in industrial development and trade integration; and (iv) intra-industry specialization occurs in the relatively low value-added product ranges. Consequently, Cambodia needs to build a solid base for industrialization—both physical and institutional—to further develop infrastructure; enhance human resource development; develop competitive and diverse export industries; and implement sound trade, investment and education policies.