TRADE DYNAMICS IN LANDLOCKED CENTRAL ASIA: INSIGHTS FROM UZBEKISTAN’S PERSPECTIVE

Abstract

This paper examines the trade dynamics of landlocked Central Asia, with a particular focus on Uzbekistan. The geographical disadvantages of Uzbekistan, a double-landlocked country, significantly impede its trade competitiveness due to high transportation costs and prolonged transit times. Historically dependent on exports of commodities such as cotton, gold, and natural gas, Uzbekistan’s economy remains vulnerable to global market fluctuations. To mitigate these challenges and enhance its trade potential, the study underscores the necessity of diversifying into value-added sectors and improving trade logistics infrastructure. By employing the gravity model of trade, the paper evaluates the impact of trade facilitation measures on bilateral trade volumes within the Central Asian region. The findings highlight the critical role of infrastructure development, customs modernization, and regional cooperation in bolstering Uzbekistan’s trade efficiency. The analysis reveals that countries with advanced trade facilitation measures engage in higher trade volumes with Uzbekistan, suggesting that strategic investments in transport infrastructure and regulatory reforms are pivotal. These efforts are essential for integrating Uzbekistan more effectively into global markets and fostering economic growth within the region.