This research attempts to study about the effect of Gross Domestic Saving on the GDP per Capita in Cambodia. The Ordinary Least Squares (OLS) model is used as the econometric model and data was taken from the annual reports of Asian Development Bank, World Bank, National Bank of Cambodia, and Ministry of Tourism from 1991 until 2014. In this econometric model, the agriculture output, import, export, population, and tourism factors have been controlled. Three econometric models were tested to prove the significance of study. In order to conduct this quantitative regression, Stata 14 software is the main statistical software that was used. Consequently, the findings of this research indicates that Gross Domestic Saving has a significant positive effect on the GDP per Capita in Cambodia at 1% significant level, especially in terms of the effect of the Gross Domestic Saving from previous year on the GDP per Capita on the current year.
This research forms an important and meaningful contribution especially, in alleviating the confusion of the relationship between Gross Domestic Saving and GDP per Capita. Moreover, scholars can use this research as one of the comparable models and as a reference in their studies too. Additionally, it will be beneficial for Cambodia if the government can design and implement policies to improve the domestic saving in order to increase the GDP per capita.