This paper analyzes how Cambodian farmers and the Cambodian government can respond to increasing
rice prices. The study estimates rice production responses in Cambodia using the Cambodian SocioEconomic
Surveys (CSES) conducted in 2004 and 2007. The results indicate that there is huge potential
for output expansion in the Cambodian rice sector, and that farmers can respond to high prices by
increasing their use of inputs such as fertilizers and irrigation. Our findings also suggest that the
Cambodian government needs to design an investment strategy that relaxes constraints in rural
infrastructure (e.g., transportation and electricity) in order to increase agricultural production and
productivity and boost farmers’ incomes.