Abstract/Summary

The COVID-19 pandemic has severely disrupted global economic activity, impacting Cambodia’s trade dynamics, weakening its integration into global value chains, and undermining export competitiveness. This chapter assesses the pandemic’s effect on Cambodia’s trade landscape, focusing on shifts in export structure, supply chain disruptions, and changes in comparative advantage. The analysis reveals that while Cambodia’s total exports contracted, certain sectors—including agricultural products, rubber, footwear, and transportation equipment—demonstrated notable resilience. Conversely, service exports, particularly in tourism and transport, experienced severe declines. The gravity model analysis highlights how Cambodia’s machinery supply chains were disrupted by the pandemic, showing sensitivity to both domestic and international COVID-19 conditions. Additionally, the study’s analysis of revealed comparative advantage presents a mixed picture, with some sectors losing competitiveness while others, notably in agriculture and machinery, enhanced their global standing. These findings highlight the urgent need for Cambodia to diversify its export markets, increase value-added activities, and strengthen regional economic partnerships to build resilience against future global disruptions. The chapter concludes with policy recommendations aimed at fostering a robust and diversified trade sector, essential for Cambodia’s economic recovery and sustainable growth in the post-pandemic world.

Open access: https://doi.org/10.1007/978-981-95-1637-7_2