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Beyond borders--Reconsidering regional trade in Central Asia

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  • Grafe, Clemens
  • Raiser, Martin
  • Sakatsume, Toshiaki

Abstract

This paper investigates the barriers to trade in Central Asia. While much of the existing literature on international integration of FSU countries has focused on the quantities traded, we use relative prices to shed some light on impediments to trade. We find that the impact of borders on price variations across different locations in Central Asia is much smaller than conventionally thought. While prices vary significantly across the region, variations within one country are just as large as variations across countries. We hypothesise (although we cannot prove) that this is due to obstacles to trade, and in particular rent seeking by enforcement agencies at the numerous internal check points. The paper also confirms that in relative terms, the borders with Uzbekistan are considerably more difficult to cross than those with Kazakhstan or the Kyrgyz Republic. Journal of Comparative Economics 36 (3) (2008) 453-466.

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  • Grafe, Clemens & Raiser, Martin & Sakatsume, Toshiaki, 2008. "Beyond borders--Reconsidering regional trade in Central Asia," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 453-466, September.
    • Handle: RePEc:eee:jcecon:v:36:y:2008:i:3:p:453-466
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    References listed on IDEAS

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    Cited by:

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    2. Morshed, A.K.M. Mahbub, 2011. "Border effects in the variability of rice price in the Indian subcontinent: Results from a natural experiment," Journal of Asian Economics, Elsevier, vol. 22(4), pages 295-301, August.
    3. Rasoulinezhad, Ehsan & Sung, Jinsok & Talipova, Amina & Taghizadeh-Hesary, Farhad, 2022. "Analyzing energy trade policy in Central Asia using the intercountry trade force approach," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 441-454.
    4. Panza, Laura, 2020. "From a common empire to colonial rule: commodity market disintegration in the Near East," CEPR Discussion Papers 15434, C.E.P.R. Discussion Papers.
    5. Bruno Versailles, 2012. "Market Integration and Border Effects in Eastern Africa," Economics Series Working Papers WPS/2012-01, University of Oxford, Department of Economics.
    6. Brenton, Paul & Portugal-Perez, Alberto & Regolo, Julie, 2014. "Food prices, road infrastructure, and market integration in Central and Eastern Africa," Policy Research Working Paper Series 7003, The World Bank.
    7. Bruno Versailles, 2012. "Market Intergration and Border Effects in Eastern Africa," CSAE Working Paper Series 2012-01, Centre for the Study of African Economies, University of Oxford.

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