Research On Economic Policy Improvement For Agriculture Sector In Cambodia

The study on economic policy improvement for agriculture sector in Cambodia.The objective of this study to investigate the long and short-term relationship between economic growth,technology,and agriculture sector in Cambodia and figure out the new economic policy.In addition,to analyze the interrelationship between economic growth and agriculture added value.The data used is time series data in the period 1995-2018 obtained world development indicators from the World Bank database.The analytical approach used is of causality with the vector error correction model(VECM)and simultaneous equations model with two-stage least square(2SLS).The finding of this study,first,in agricultural added value equation indicates the validity of the long and short-term equilibrium relationship between variables,there is long and shortterm causality in the direction of economic growth for agriculture added value;second,the finding in the economic growth model indicates that technology,agriculture added value,nonagricultural added value has positive sign and significant effect on the economic growth;third,the finding in the agriculture added value model indicates that economic growth and labor force has positive and significant effect on agricultural added value.Meanwhile,non-agricultural added value has a negative sign and significant effect on agriculture added value.Updating the current status of agriculture sector and setting up policies for promoting investment.Our study has showed that a proper agriculture policy should be maintained to improve and reform country’s agriculture sector with high priority,in order to sustain economic growth in Cambodia.