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Beyond borders: Reconsidering regional trade in Central Asia

Author

Listed:
  • Clemens Grafe

    (Union de Banques Suisse)

  • Martin Raiser

    (World Bank)

  • Toshiaki Sakatsume

    (European Bank of Reconstruction and Development)

Abstract

This paper investigates the barriers to trade in Central Asia. While much of the existing literature on international integration of former Soviet Union countries has focussed on the quantities traded, this paper uses relative prices to shed some light on impediments to trade. It finds 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. This may be 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.

Suggested Citation

  • Clemens Grafe & Martin Raiser & Toshiaki Sakatsume, 2006. "Beyond borders: Reconsidering regional trade in Central Asia," Working Papers 95, European Bank for Reconstruction and Development, Office of the Chief Economist.
    • Handle: RePEc:ebd:wpaper:95
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    More about this item

    Keywords

    Central Asia; barriers to trade; market integration;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • F15 - International Economics - - Trade - - - Economic Integration
    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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