Determinants of Poverty in Cambodia: A Quantile Regression Analysis

Abstract

This dissertation aims to evaluate the impacts of Economic, social and political indicators on Determinants of poverty in Cambodia. Poverty in Cambodia is the main issue that slows down economic growth in the whole country and social welfare for the household. So, this study will give the background of Cambodia’s poverty issue and raise research questions about how poverty is defined and measured, what are the cause, how it can be alleviated and adjust future policies to deal with the poverty issue in the context of Cambodia as one of a developing country in south-east Asia. This study has been written and compiled by hoping of giving some useful benefits to the theory of poverty and the econometric model. It will enable students to comprehend both analyzing data as well as interpreting data on poverty in Cambodia phenomena. Moreover, this study would enhance knowledge regarding of the factors as the determinant of poverty in Cambodia. All selected variables (FDI, TEX, GDP, INFRA, ARD, EDU, GOVT and SPI) are used in estimating quantile regression analysis with 20 bootstrap replications by using simultaneous quantile regression in different quantile (.10, .20, .30, .40, .50, .60, .70, .80 and .90) to predict the effect by using the dataset from 2000 to 2020. The output of this study shows that EDU and TEX are affects all quantile levels (low, middle and high poverty level). Low poverty level (10%-30%) and Middle poverty level are affected by TEX, EDU, ARD, GDP, INFRA and SPI. Moreover, high-income group (70%-90%) are impacted by EDU, SPI and TEX.