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Trade costs and agricultural trade in Central Asia
[Handelskosten und Agrarhandel in Zentralasien]

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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 [Handelskosten und Agrarhandel in Zentralasien]," IAMO Discussion Papers 146, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
  • Handle: RePEc:zbw:iamodp:146
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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.
    2. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, vol. 34(9), pages 1498-1516, September.
    3. Pomfret, Richard & Sourdin, Patricia, 2009. "Have Asian trade agreements reduced trade costs?," Journal of Asian Economics, Elsevier, vol. 20(3), pages 255-268, May.
    4. 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.
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    More about this item

    Keywords

    trade costs; agricultural trade; Central Asia; Handelskosten; Agrarhandel; Zentralasien;
    All these keywords.

    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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