Export structure and performance in a landlocked transitional economy: The case of Kyrgyz Republic

Vol: 
2018/24
Author name: 
Prema-chandra Athukorala
Year: 
2018
Month: 
October
Abstract: 

Thanks to the market-oriented reforms undertaken since the early 1990s, the Kyrgyz Republic has emerged as one of the most globally integrated economies in the former Soviet space and the centre of entrepôt trade in Central Asia. However, the patterns of global economic integration of the Kyrgyz economy have so far been rather lopsided. While there have been some notable changes in the structure of exports in line with the country’s comparative advantage, export expansion has not kept pace with rapid import penetration in the economy. This has led to increased dependence of the economy on migrant-worker remittances and external financing. The composition of external financing has begun to shift from grants and concessionary loans towards borrowing at commercial rates, thus potentially exposing the economy to additional external economic shocks. A major contemporary policy challenge faced by the country is broadening the export base. This requires speedy implementation of behind-the-border reforms to supplement the significant opening of the economy to foreign trade and investment.

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