Trade Effects of Transportation Infrastructure among CAREC Countries

Abstract

This paper analyzes the trade effects of road and rail infrastructure reforms in 11 member countries of the Central Asia Regional Economic Cooperation (CAREC) program. It explains how bottlenecks and border delays hinder regional trade and shows how improving transportation frees up commerce and makes CAREC countries more competitive. The paper highlights how reforms impact on time-sensitive inputs and bilateral trade as well as how they cut transportation times between key cities, along with the countries most likely to benefit from it.