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Assessment of the Impact of Customs Regulation Factor on Foreign Trade of Kazakhstan

Author

Listed:
  • Gaziza Yessenzholova
  • Raushan Dulambayeva
  • Saltanat Kapysheva

Abstract

The development of Kazakhstan's foreign trade is a central factor in Kazakhstan's economic growth, and therefore it is important to understand which trade procedures have a negative and positive aspect on the development of trade relations between countries. Customs procedures are an integral part of the passage of international borders. It is significant that such procedures do not have a negative impact on trade. The article on the basis of the gravitational model of foreign trade assesses the influence of the factor of customs regulation, namely the implementation of customs procedures at the border for the development of exports and imports of Kazakhstan. The models are based on bilateral trade data from Kazakhstan with 53 countries for the period 1995-2021, with partner countries divided into three groups depending on the income level of the countries to obtain better results. Independent variables reflecting customs regulation were countries' participation in the Revised Kyoto Convention (RKC), time and cost of customs formalities at the border according to the World Bank Report «Doing Business» (Trading across borders). The study concluded on the impact of customs regulation on the foreign trade of Kazakhstan, with the time factor playing a more significant role than transaction costs on customs clearance. At the same time, the participation of countries in the RKC has a positive impact on the development of bilateral trade. The assessment of the impact of customs procedures on the development of foreign trade confirms the need for customs regulatory reforms.

Suggested Citation

  • Gaziza Yessenzholova & Raushan Dulambayeva & Saltanat Kapysheva, 2023. "Assessment of the Impact of Customs Regulation Factor on Foreign Trade of Kazakhstan," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 66-81.
    • Handle: RePEc:bas:econst:y:2023:i:5:p:66-81
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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