Determinants of Tajikistan’s Agricultural Trade: Gravity Model Approach

Abstract

This study attempts to determine factors that affect agricultural trade of Tajikistan. The panel data estimation method and generalized gravity model have been used to analyze Tajikistan’s agricultural trade pattern. An analysis revealed that the main contributors to Tajikistan’s agricultural export are GDP of Tajikistan, GDP and GDP per capita of importing country, tariff rates implied by importing country, openness and Logistic performance index of partner country as well as existence of common language between trading countries. All these mentioned factors affect on Tajikistan’s agricultural exports. The country specific effects present that except of neighboring countries, Tajikistan have significant share of export with far distance trading partners as well. These results are important for formulation of further improvements of trade policies in the region to promote Tajikistan’s agricultural export to the world market.