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Central Asia's transport cost burden and its impact on trade
Affiliation:1. World Bank, 600 19th street, Washington DC 20433, USA;2. Ecole Nationale des Ponts et Chaussées, LATTS – ENPC, 6 Av. Blaise Pascal, 77455 Marne la Vallée, cedex 2, France;3. Lancaster University, Lancaster, LA1 4YB, UK;1. Department of Economics and Center for Research on International Economics, University of Wisconsin-Milwaukee, Milwaukee, WI 53201, United States;2. Department of Economics, Penn State University, Mont Alto, PA 17237, United States;3. Department of Economics, Northeastern Illinois University, Chicago, IL 60625, United States;1. Schnellecke Logistics AG & Co. KG., Stellfelder Straße 39, 38442 Wolfsburg, Germany;2. Cranfield University, MK43 0AL Central Ave, Cranfield, Bedford, United Kingdom;1. Eastern Mediterranean University, Cyprus;2. Southern Illinois University Edwardsville, United States;1. UMR 7300 ESPACE, University of Avignon, 74 rue Louis Pasteur, Avignon 84000, France;2. LIA, University of Avignon, 339 Chemin des Meinajaries, 84000 Avignon, France
Abstract:This paper examines the role of transportation costs in causing the countries of Central Asia to generate far less trade with the European Union (EU) than their relative location would suggest. Based on data collected from transport professionals, it detects a sharp increase in the transportation costs and time at Warsaw, moving east from the EU towards the Commonwealth of Independent States (CIS). In the case of Central Asia, border-crossing problems, low traded volumes and trade imbalance, inter alia, seem to be major explanations of the unexpected low trade level between Central Asia and the EU.
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