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The Effects of Financial Institutions’ Credit Allocation on the Economic Growth in Cambodia: A By-Industry Analysis

Pisith Hok

ACLEDA University of Business, Phnom Penh, Cambodia

Bora Khath

Preah Sihamoniraja Buddhist University, Phnom Penh, Cambodia

Tharith Pin

ACLEDA University of Business, Phnom Penh, Cambodia

ISSN: 3078-4131 (Print)

DOI: https://doi.org/10.71215/cjbpp.202623

Keywords: Credit Allocation, Economic Growth, Gross Domestic Product, Financial Institutions, Credits, Classified Industries

Published: 2026-01-06

How to Cite in APA Style: Hok. P., Khath. B. & Pin. T, (2026). The effects of financial institutions’ credit allocation on the economic growth in Cambodia: A by-industry analysis. Cambodia Journal for Business and Professional Practice, 2026(2), 51–81.

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Abstract

This study applies quantitative analysis to examine credit disbursement by financial institutions across industries in Cambodia, using official economic growth data. Results show that total credits from banks (TCID_Bs) and microfinance institutions (TCID_MFIs) are strong predictors of growth, where a 1% increase in TCID_Bs and TCID_MFIs corresponds to 0.3595% and 0.3136% rises in Cambodian GDP (NGDPD), respectively. Sectoral analysis highlights differing effects: for banks, a 1% increase in credits to Real Estate raises NGDPD by 0.34%, credits to Agriculture, Forestry and Fishing and Other Lending by 0.12% each, Information Media and Telecommunications by 0.04%, and Rental and Operational Leasing by 0.036%, while credits to Hotels and Restaurants, Utilities, and Mining and Quarrying reduce NGDPD by 0.32%, 0.11%, and 0.05%. For MFIs, credits to Household and Trade and Commerce raise NGDPD by 0.26% and 0.23%, while credits to the Agricultural sector reduce it by 0.45%. These findings show that while most sectoral lending supports economic growth, some industries negatively affect it, emphasizing the need for targeted credit allocation to foster sustainable and inclusive economic development.

Authors’ Biography

Pisith Hok has obtained a Master degree of Finance and Business Economics from the University of Adelaide, Australia. He also has had a strong educational background from Cambodia, including a Bachelor of Arts in English (TEFL-Teaching English as a Foreign Language), a Bachelor of Business Administration in Accounting, a Certificate of Teacher with Higher Education Degree (CTHED) in English and Educational Psychology and a Master of Business Administration in Finance and Banking. He has extensive experience of more than 18 years in the educational field, from ESL teaching to tertiary lecturing at various institutes and universities, mostly Accounting, Finance, Banking and Economics subjects. In addition to his teaching, he also has had more than 4-year practical experience in Accounting and Finance work, including more than 2 years of employment in public accounting at the Provincial Treasury and about 2 years in budgeting at the Ministry of Economy and Finance. He is a qualified tertiary educator with a Professional Certificate in Pedagogy, endorsed by the Ministry of Education, Youth and Sport, and with expertise in the development of the curriculum of Accounting, Finance and Banking, Economics, and other majors, both at undergraduate and graduate levels. He has been working for the ACLEDA University of Business (AUB) since 2016, starting as a Consultant to an Assistant Professor and to a Technical Team Leader. He is currently a Dean of Faculty of Law and Economics (FLE).

Bora Khath is a lecturer, researcher, and corporate trainer with over 15 years of experience in higher education, leadership development, and business consultancy. He holds a Doctor of Business Administration from the Atlanta College of Liberal Arts and Science (USA), a PhD in Business Administration from BELTEI International University (Cambodia), and a PhD in International Business from the Universal Ministries of The King’s College (USA). His expertise covers leadership, business management, human resource management, organizational behavior, economic development, human development, and soft skills. Dr. Bora has participated in numerous international training programs in 12 countries including Singapore, Japan, India, Taiwan, China, Hong Kong, Macau, Vietnam, Thailand, Philippines, Malaysia and the Netherlands under organizations such as the Asian Productivity Organization (APO), HIDA, and Wageningen University, focusing on business excellence, business management, leadership, SME development, innovation, and digital transformation. He serves as a thesis advisor and evaluation committee member for PhD and MBA programs and has published research on leadership styles, employee performance, and service delivery effectiveness, contributing to management education and professional practice in Southeast Asia.

Tharith Pin is a distinguished Cambodian professional and academic with extensive experience in government advisory, higher education leadership, and economic research. His impressive academic background includes two doctoral degrees—a Ph.D. in International Trade and Economics (China) and a Ph.D. in Business Administration (USA), along with an M.B.A. in General Management (Cambodia). His research focuses on critical Cambodian topics, including the impact of fiscal policy on trade competitiveness and economic growth. H.E. Dr. Pin Tharith holds senior leadership positions, serving since 2015 as an Advisor to the Royal Government of Cambodia at the Office of the Prime Minister, with the rank of Under-Secretary of State, specializing in Economic and Environment Study and Research. He is also the Chief of Program Coordination Office for the Task Force for the Agriculture and Rural Development of Cambodia since 2016. Furthermore, he contributes to academia as the Dean of Faculty of Sociology Science at CHENLA University and has been an active Lecturer of Business and Economics since 2008. His career highlights his combination of advanced academic credentials and high-level policy advisory positions, marking him as a key contributor to Cambodia's economic and educational development.

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