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Beyond borders: Reconsidering regional trade in Central Asia

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Author Info

  • Clemens Grafe

    (Union de Banques Suisse)

  • Martin Raiser

    (World Bank)

  • Toshiaki Sakatsume

    ()
    (European Bank of Reconstruction and Development)

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    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.

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    Bibliographic Info

    Paper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 95.

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    Length: 29 pages
    Date of creation: Mar 2006
    Date of revision:
    Publication status: Published in C.Grafe, M.Raiser and T.Sakatsume (2008), Beyond borders--Reconsidering regional trade in Central Asia, Journal of Comparative Economics,36(3),pp 453-466.
    Handle: RePEc:ebd:wpaper:95

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    Related research

    Keywords: Central Asia; barriers to trade; market integration;

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    1. Daniel Berkowitz & David N. DeJong, 2002. "Integration: An Empirical Assessment of Russia," William Davidson Institute Working Papers Series 488, William Davidson Institute at the University of Michigan.
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