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Trade costs and agricultural trade in Central Asia

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  • Pomfret, Richard

Abstract

Central Asian governments frequently express the goal of economic diversification, and specifically of diversifying their agricultural sector, but with little actual impact. Diversification has not happened because high trade costs discourage farmers, potential foreign investors and others from identifying new products that could be produced competitively. This paper reviews recent international literature on trade costs, and the limited Central Asian evidence. Because of high trade costs, the phenomenon of global value chains has scarcely touched Central Asia, apart from a few cases in the Kyrgyz Republic. The examples of clothing and beans illustrate how a Central Asian country has joined international value chains. The paper draws conclusions about how Central Asian countries wishing to diversify their agricultural sectors could draw upon this experience.

Suggested Citation

  • Pomfret, Richard, 2014. "Trade costs and agricultural trade in Central Asia," IAMO Discussion Papers 168931, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamodp:168931
    DOI: 10.22004/ag.econ.168931
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    References listed on IDEAS

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    1. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-2959, December.
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    4. Melitz, Marc J. & Redding, Stephen J., 2014. "Heterogeneous Firms and Trade," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 1-54, Elsevier.
    5. Pomfret, Richard & Sourdin, Patricia, 2009. "Have Asian trade agreements reduced trade costs?," Journal of Asian Economics, Elsevier, vol. 20(3), pages 255-268, May.
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    8. Tilekeyev, Kanat, 2013. "Productivity Implications of Participation in Export Activities: The Case of Farmers in Talas Oblast of Kyrgyzstan," MPRA Paper 66717, University Library of Munich, Germany.
    9. Richard Baldwin, 2011. "Trade And Industrialisation After Globalisation's 2nd Unbundling: How Building And Joining A Supply Chain Are Different And Why It Matters," NBER Working Papers 17716, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Richard Pomfret, 2017. "Improved Infrastructure and Agricultural Exports from Central Asia," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 35-57.
    2. Richard Pomfret, 2016. "Modernizing Agriculture in Central Asia," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 8(2), pages 104-125, May.

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    More about this item

    Keywords

    Agribusiness; International Relations/Trade;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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