Afghanistan's Regional Integration With Central Asia: Identifying Trade Linkages, Economic Recital and Future Latency

Abstract

Using different trade indices spanning 2018–2021, this chapter investigates Afghanistan's current patterns, prospects and barriers for intra- and inter-regional trade perspectives, emphasising the different pathways by which Afghanistan trades with Central Asian economies. The empirical findings demonstrate that the anticipated significance of trade between Afghanistan and Central Asia is double compared to the existing levels of trade. Furthermore, the analysis encompasses the categorisation of sectors based on the intensity of usage of production factors like resource, labour and technology. The analysis further elaborates on Afghanistan's trade potential with Central Asia and vice versa by highlighting the comparative advantage, diversification, complementarity and similarity in trade. The findings suggest that larger economies are rated higher than smaller ones as size and development level are essential factors in regional trade development. The most effective channels of regional trade development are price competitiveness measures, intra-industry trade and trade complementarities. These findings have a substantial influence on the development of different trade policy efforts to stimulate investment and trade within and among the two regions.

Citation

Wani, N.U.H. (2024), "Afghanistan's Regional Integration With Central Asia: Identifying Trade Linkages, Economic Recital and Future Latency", Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 13-39. https://doi.org/10.1108/978-1-83753-430-220241002