Middle East and Central Asia > Kyrgyz Republic

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  • Balance of trade x
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Ms. Katrin Elborgh-Woytek
This paper analyzes developments in the structure of trade in the Commonwealth of Independent States (CIS) during the transition decade, and finds that it changed less than in other transition economies. Trade openness of the CIS increased between 1993 and 1997, but has fallen to a lower-level plateau since then owing to regional and country-specific factors. These include slower progress in transition, geographic aspects, restrictions on trade, governance and corruption problems, weak infrastructure, lack of regional cooperation, and political conflicts. Regression results show that trade openness of the CIS countries would likely increase substantially if market-oriented reforms were pursued more vigorously.
Mr. Oleh Havrylyshyn
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Mr. Hassan Al-Atrash
This paper looks at the progress in transition and the geographic diversification of trade, focusing on two issues--the degree of trade openness and trade integration--for a sample of countries in transition. It concludes that about half of the group of countries sampled are becoming as open as similar market economies, but that many others remain relatively closed. Geographic diversification (to the European Union) is found to be greater the closer is geographic proximity and the more advanced the country is with reforms. The analysis is then extended, in an illustrative way, to show how much larger would be the share of exports to the EU if structural reforms were more ambitious.