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Trade policy in a ‘double‐landlocked’ transition economy: Kyrgyzstan

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  • Prema‐chandra Athukorala
  • Hal Hill

Abstract

This paper examines trade and commercial policy in Kyrgyzstan in the context of that country's distinctive historical and geographical characteristics, drawing on the World Trade Organisation's latest Trade Policy Review. A former Soviet republic, it is a geographically isolated, effectively a ‘double‐landlocked’, transition economy. The country was an early liberalizer, both economically and politically, among the former Soviet republics, and it is now a broadly open economy. After a catastrophic economic decline in the immediate transition era it also achieved macroeconomic stabilisation relatively quickly. However the growth dividend from these major policy reforms has been modest, and the country has become one of the most remittance‐dependent economies in the world. While its geographical handicaps are immutable, we argue that key explanations for the slow economic growth are the limited ‘behind‐the‐border’ reforms, the dualistic economic structure, and misdirected fiscal allocations. We also draw out some of the broader implications for trade policy reform in other transition economies.

Suggested Citation

  • Prema‐chandra Athukorala & Hal Hill, 2023. "Trade policy in a ‘double‐landlocked’ transition economy: Kyrgyzstan," The World Economy, Wiley Blackwell, vol. 46(12), pages 3455-3471, December.
    • Handle: RePEc:bla:worlde:v:46:y:2023:i:12:p:3455-3471
    DOI: 10.1111/twec.13416
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    1. Regine A. Spector, 2018. "A regional production network in a predatory state: export-oriented manufacturing at the margins of the law," Review of International Political Economy, Taylor & Francis Journals, vol. 25(2), pages 169-189, March.
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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