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Diversifying Trade Flows, Facilitation, and Infrastructure Quality in the CASA Region: An Empirical Exploration

In: Trade and Development in Central and South Asia

Author

Listed:
  • Nassir Ul Haq Wani

    (Policy and Impact, Kardan University, Department of Research and Development
    Kashmir Research Information System)

Abstract

The trading scenarios in economies are interlinked with key dimensions like infrastructure quality, trade facilitation, and transport routes, and thus are crucial for economic growth. This chapter analyses the changing trade flows, trade facilitation, infrastructure, and transportation routes in CASA as a reaction to external shocks. This study investigates the impact of infrastructure and trade facilitation on inter-CASA trade, employing datasets from the Corridor Performance Measurement and Monitoring (CPMM) indicators. The study identified trends, volumes, trade routes, and potential prospects for diversification and reorientation in CASA trade from 2010 to 2021. The research highlights the economic viability of the Middle Corridor, which is increasingly considered a crucial transportation and transit option for the CASA region. In addition to how well their infrastructure is developed, the results indicate that the costs of crossing borders and how quickly people can travel along the CAREC corridors are critical for Central Asia’s trade with three South Asian countries. An increase in the average velocity of cargo transit (domestic or international) along a CAREC corridor significantly benefited both exports and imports. This study demonstrates that for trade flows to improve in the long term, CAREC members must collaborate to develop and utilise hard infrastructure. This should be paired with soft infrastructure projects, like trade facilitation measures that aim to make the region more integrated. The paper advocates for the enhancement of both physical and soft infrastructure in CASA member nations to facilitate trade and improve regional integration. This dual approach is essential for fostering long-term regional cooperation and economic resilience.

Suggested Citation

  • Nassir Ul Haq Wani, 2025. "Diversifying Trade Flows, Facilitation, and Infrastructure Quality in the CASA Region: An Empirical Exploration," Springer Books, in: Trade and Development in Central and South Asia, chapter 0, pages 239-265, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-2728-1_10
    DOI: 10.1007/978-981-95-2728-1_10
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