International companies who do wish to invest in Cambodia are further encouraging low skill and low pay, leading to an economy-wide low-production-quality trap occurring when there are O-ring effects “across firms as well as within firms” (Todaro & Smith, p.179, 2009). Kremer’s O Ring theory suggests local production bottlenecks have a multiplicative effect on other production; bottlenecks reduce workers’ incentive to invest in human capital as the return on their skills is lowered. This will further distort growth, the more industries moving towards O-ring reflects sources of growing inequality, therefore an industrial policy should be implemented by the government to encourage quality improvement in human capital in order to generate equal growth through...
... middle of paper ...
...on, Journal of Economic Perspectives, 24(3), p.33-44. Retrieved 14th December 2013, from http://www.jstor.org.
Todaro, M.P. & Smith, S.C. (2009). Economic Development. (10th ed.), Essex: Pearson Education Limited.
UNDP Cambodia. (2011). Human Capital Implications Of Future Economic Growth In Cambodia: Elements of a Suggested Roadmap, 1-176. Retrieved 23rd December 2013, from Strategic Asia http://www.strategic-asia.com.
The World Bank (2013). Data. Retrieved 14th December 2013, from http://data.worldbank.org/
Richardson, J.W. (2008) ICT in Education Reform in Cambodia: Problems, Politics, and Policies Impacting Implementation, p.1-16. Retrieved 14th December 2013, from http://itidjournal.org/itid/article/viewFile/311/143.
UNIAP. (2013). UNIAP Cambodia; The Trafficking Situation. Retrieved 28th October 2013, from http://www.no-trafficking.org/cambodia.html.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- ... 39), where a country's other industries become less competitive as a result of currency valuation due to the revenue raised from the resource. The rush of investment in one sector sucks attention, capital, and skills from all other parts of the economy, causing the economy to become heavily one-sided. As revenues often end up in the foreign bank accounts of the elite, it is rare profits from natural resources to reach the people. The Landlocked with Bad Neighbours Trap, as Collier explains, surrounds the fact that countries with coastlines trade with the world, while landlocked countries trade mainly with their neighbours.... [tags: civil war, landlocked, government]
574 words (1.6 pages)
- Title: The Risk and Return of Human Capital Investments (2013) Kristen Koerselman & Roope Uusitalo This paper looks at investment in human capital and the level of risk involved. The aim of this paper is to show how moments in lifetime income can be estimated from a shorter panel. The paper uses a 22-year panel (based on Finnish registers). Some of the techniques used in this short paper are mean and variance in lifetime earnings and discounted means of lifetime earnings, for university graduates and vocational high school graduates.... [tags: Investment, Level pf Rsk Involved, Human Capital]
863 words (2.5 pages)
- Human Trafficking in Cambodia Imagine a four year old girl growing up in contemporary Cambodia. Each morning she wakes up miles from home, homesick and scared. She is forced to beg for money for the brothel that she belongs to, and all of her earnings go straight to her master. Then, that night, about seven men come to the brothel. These men, some as old as fifty, often pay as little as two dollars to partake in sexual intercourse with these school-aged children. The toddlers enslaved in the horrific sex trade are forever stripped of their purity, making human trafficking a major issue in present day Cambodia.... [tags: Cambodia]
2078 words (5.9 pages)
- For this course I created a stock portfolio, carefully monitoring each week their performance, as well as a summary of the importance of attracting investment capital for companies. Below I give you the overview stock investment objectives, rankings of their performance, summary and a description of the stocks I selected bases on the investment guidelines and objectives. Capital Investments The process of making a capital investment decision involves the following steps: Identification of a project, the definition of a project and screening, analyzing and accepting, implementation, monitoring and post audits.... [tags: Investment, Bond, Capital accumulation, Finance]
895 words (2.6 pages)
- Apart from the financial aspect of evaluating capital investments which are majorly based on the time value of money, non-financial approaches are also available and is utilized by managers. Ultimately, when a company decides to invest in a capital project, it is either to replace older assets, to utilize new technology or to enable the business in some form or fashion (increase production). Notwithstanding, the non-financial approach involves looking at non-financial factors that are considered before settling on capital assets to invest in.... [tags: Investment, Finance, Capital]
898 words (2.6 pages)
- Investing in Human Capital When you think of investments you may think of stocks, bonds, mutual funds, savings accounts, CD's, and etc. There is some other way that you can invest. You can invest in your life through various things whether it is volunteer or paid. That is called human capital and that is "the stock of knowledge and skill, embodied in an individual as a result of education, training, and experience that makes them more productive" (1). I have invested in my life in a variety of ways and I will talk about this in the next few paragraphs.... [tags: Education Investment Human Capital]
1706 words (4.9 pages)
- Introduction There are a number of different methods that can be utilized by a company to make capital budgeting solutions, the health care industry is no different. No one method alone can be a perfect indicator of value, risk or shareholder wealth. Each method is known to have its advantages and flaws. While evaluating capital investment tools, this paper will focus on Net Present Value, Internal Rate of Return and Payback, while trying to determine what method would be most beneficial for use in the health care industry.... [tags: Net present value, Investment, Rate of return]
878 words (2.5 pages)
- According to experts, the human capital originated with Theodore Schultz, an economist that was interested in the world’s underdeveloped countries. Mr. Schultz claimed that improving welfare of poor people did not depend on equipment, energy, land but rather on education. He also argued that many have neglected to see human beings as capital and therefore they have done a poor job encouraging knowledge. Economist Theodore Schultz became a winner of the Noble Prize in 1979. Today, because of his many examples, others have embraced the importance of helping one another become more productive through motivation of higher education and job training techniques.... [tags: Investment, Capital accumulation, Economic growth]
1659 words (4.7 pages)
- 01. Investment Financing Assets management Investment: there are two types of decisions 1. Capital investment decision (plant and machinery, long term investment, short term investment, etc.) 2. Working capital investment decision (nature or background on business) Financing: Financial manager must decide how to invest after decided about the amount and type of the assets to buy. Whether to borrow long, medium or short term Assets management: After purchased assets under good financing management, the process must be secured, because it involves the efficient and effective management of current assets.... [tags: Finance, Stock, Stock market, Investment]
711 words (2 pages)
- Economist Theodore Schultz invented the term human capital in the 1960s to reflect the value of our human capacities. He believed human capital was like any other type of capital; He believed that investing on human capital would lead us to a higher production, (Investopedia) Investopedia defines human capital as a measure of the economic value of an employee's skill set. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them.... [tags: Economics Workforce Human Capital]
1403 words (4 pages)