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The Role of Trade Facilitation in Central Asia

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  • Jesus Felipe
  • Utsav Kumar

Abstract

With a decrease in formal trade barriers, trade facilitation has come into prominence as a policy tool for promoting trade. In this paper, we use a gravity model to examine the relationship between bilateral trade flows and trade facilitation. We also estimate the gains in trade derived from improvements in trade facilitation for the Central Asian countries. Trade facilitation is measured through the World Bank's Logistic Performance Index (LPI). Our results show that there have been significant gains in trade as a result of improving trade facilitation in the Central Asian countries. These gains in trade vary from 28 percent in the case of Azerbaijan to as much as 63 percent in the case of Tajikistan. Furthermore, intraregional trade has increased by 100 percent. Among the different components of the LPI, we find that the greatest increase in total trade comes from improvement in infrastructure, followed by logistics and efficiency of customs and other border agencies.

Suggested Citation

  • Jesus Felipe & Utsav Kumar, 2012. "The Role of Trade Facilitation in Central Asia," Eastern European Economics, Taylor & Francis Journals, vol. 50(4), pages 5-20, July.
    • Handle: RePEc:mes:eaeuec:v:50:y:2012:i:4:p:5-20
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    Citations

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    Cited by:

    1. Kamalbek Karymshakov & Burulcha Sulaimanova, 2021. "The impact of infrastructure on trade in Central Asia," Asia Europe Journal, Springer, vol. 19(1), pages 5-20, December.
    2. Bagci, Kenan & Bakimli, Esat & Diallo, Abdouramane, 2022. "Impacts of Trade Facilitation and Logistics Performance on Trade Flows: The Case of Landlocked African OIC Countries (Burkina Faso, Chad, Mali, Niger and Uganda)," Conference papers 333447, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Ruwan Jayathilaka & Chanuka Jayawardhana & Nilupul Embogama & Shalini Jayasooriya & Navodika Karunarathna & Thisara Gamage & Nethmali Kuruppu, 2022. "Gross domestic product and logistics performance index drive the world trade: A study based on all continents," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-16, March.
    4. Enkang Li & Mengqiu Lu & Yu Chen, 2020. "Analysis of China’s Importance in “Belt and Road Initiative” Trade Based on a Gravity Model," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    5. Avetisyan, Misak & Hertel, Thomas, 2021. "Impacts of trade facilitation on modal choice and international trade flows," Economics of Transportation, Elsevier, vol. 28(C).
    6. 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.
    7. Zühal Kurul, 2023. "Hard and soft factors of trade facilitation and export diversification: Evidence for developing and the least developed countries," The Developing Economies, Institute of Developing Economies, vol. 61(2), pages 75-116, June.
    8. Alen Host & Helga Pavliæ Skender & Petra Adelajda Zaninoviæ, 2019. "Trade Logistics – the Gravity Model Approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(1), pages 327-342.
    9. Mamta Kumari & Nalin Bharti, 2021. "Trade and logistics performance: does country size matter?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 401-423, September.
    10. Filip Bugarcic & Joern Kleinert, 2024. "Estimating the effects of logistics performance on trade: Evidence from different gravity model approaches," Graz Economics Papers 2024-13, University of Graz, Department of Economics.
    11. Alassane D. Yeo & Aimin Deng & Todine Y. Nadiedjoa, 2020. "The Effect of Infrastructure and Logistics Performance on Economic Performance: The Mediation Role of International Trade," Foreign Trade Review, , vol. 55(4), pages 450-465, November.
    12. Arif Imam Suroso, 2022. "The Effect of Logistics Performance Index Indicators on Palm Oil and Palm-Based Products Export: The Case of Indonesia and Malaysia," Economies, MDPI, vol. 10(10), pages 1-15, October.
    13. Wang, Shubai & Zhu, Yaqing, 2024. "An inquiry into the effect of trade facilitation on China's digital product exports to countries along the "Belt and Road"," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 1246-1259.
    14. Taguchi, Hiroyuki, 2022. "Manufacturing exports and institutional qualities: The case of central Asian countries," MPRA Paper 113585, University Library of Munich, Germany.
    15. Rosa Puertas & Luisa Martí & Leandro García, 2014. "Logistics performance and export competitiveness: European experience," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 467-480, August.
    16. Jiangyuan Fu & Linyi Chen & Huidan Xue, 2023. "The Impacts of Trade Facilitation Provisions on Fresh Agricultural Products Trade between China and the BRI Countries," Agriculture, MDPI, vol. 13(2), pages 1-17, January.
    17. Halaszovich, Tilo F. & Kinra, Aseem, 2020. "The impact of distance, national transportation systems and logistics performance on FDI and international trade patterns: Results from Asian global value chains," Transport Policy, Elsevier, vol. 98(C), pages 35-47.

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