Does FDI Affect Exports in Cambodia? Study with ARDL Approach

English

Abstract

This study looks at how factors including exports, FDI, inflation, and GDP in Cambodia relate over the long and short terms. We use the World Bank as a supplementary source for statistics data, namely data from 2000 to 2020. We find that the variables we estimate have a varied relationship with exports in Cambodia, in the short term foreign direct investment is the dominant factor influencing exports, followed by inflation. The ARDL test found that when foreign direct investment increases, it will give a negative sentiment towards an increase in exports in Cambodia; in line with this, the economic growth variable is also the same. This is different from other variables, such as inflation, where when there is an increase it will make a positive contribution to the increase in exports. This shows that in Cambodia foreign direct investment remains the dominant factor for exports, but in the short term has a negative sentiment, different in the long term.