Promoting Employment through identifying SME exportable market: A Shift-share Approach

Type Working Paper - Mekong Economic Research Network (MERN)
Title Promoting Employment through identifying SME exportable market: A Shift-share Approach
Author(s)
Publication (Day/Month/Year) 2015
URL http://mernetwork.org/wp-content/uploads/2015/04/MERN-Small-grant-2-Cambodia.pdf
Abstract
Small and Medium Enterprise has been the concern for the Royal Government of Cambodia (RGC) for more than a decade – noticeably, it was firstly mentioned in the National Poverty Reduction Strategies (NPRS) in 2002. As SME commonly operates in the labor-intensive industry, hires low-skill labor and is located in the rural area, promoting this sector is crucial to boost employment, diversify the country economic growth and reduce the poverty and inequality. RGC continually determine SME as the key developmental strategy in both Rectangular Strategy Phase I and Phase II to promote private sector development and employment generation. Despite the importance of this sector, SME is still facing lots of constraints. One of the most significant obstacles for the growth of this sector is market access a most of the SME products are traded domestically and haven’t exported yet. This research proposes a quantitative approach to study about the exportable market for SME by using the Shift-Share method. Ten potential export markets/countries will be identified for the ten selected products of manufacturing SME. The results from this study will assist SME in identifying the potential export markets of their products and contribute to the policy of RGC in promoting SME sector and generating more employment.

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