In the s, six former southern republics of the USSR Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan , like other former Soviet republics, traded very intensively both between themselves and with the other Soviet republics, but had a meagre volume of trade with the rest of the world. After the transition to the market, the deregulation of foreign trade, and the collapse of the USSR in the s, trade between the former Soviet republics shrank dramatically and was only partially replaced by trade with other countries, mostly from Western Europe. In the s and s, the relative importance of trade with Western Europe has declined and the share of trade with China and other Asian countries has grown. This paper compares changes in the geographical structure of trade of both former Soviet republics Central Asian countries and Azerbaijan and Turkey, with the predictions of the gravity model. The gravity model suggests that trade between two countries is proportionate to their respective GDPs and is inversely related to the geographical distance between them.
Global changes in the geographical structure of trade in Central Asia
Over a period of about years, from A. With the end of the British Empire in India in and, more importantly, the Soviet Union in , the artificial divide across Central Asia was removed. With the rapid growth of the Chinese and Indian economies, Central Asia now lies between Asian and European markets that account for two-thirds of the global population, two-thirds of world GDP, and more than two-thirds of global trade. Of critical importance to the region is the rebalancing of the Chinese economy: Its center of gravity is moving west , away from the eastern seaboard and closer to the land border with Central Asia. As China moves production inland, land transport through Central Asia to Europe becomes increasingly attractive. For goods being shipped to Europe from Eastern China, the alternative is to first ship eastwards to Shanghai before sailing for six weeks to Europe.
Changes in the geographical structure of trade in Central Asia
Inde-Asie centrale : rou The caravan traders acted as the medium of exchange of art, culture, ideas and technology thereby assisting in the process of urbanisation. So much so, many areas along the trade routes became famous for their specific products.
David L. Hummels, David, Beata Smarzynska Javorcik,