Trade in Services in Kazakhstan: How Did the Entry into the EAEU Affect It?

Abstract

This paper investigates the factors important for bilateral services trade between Kazakhstan and other countries. The subject of this article is trade in services in Kazakhstan. Our goal is to determine the factors significantly affecting trade in services in Kazakhstan. Our central hypothesis is that the Eurasian economic union (EAEU) membership was not essential for trade in services in Kazakhstan. The main result is that external trade in services is mainly influenced by factors such as the distance between Kazakhstan and partner countries and the GDP growth rate of partner countries.

Keywords:

• Common language
• contiguity
• distance
• EAEU
• GDP
• gravity model
• services
• single market
• trade
• trade-in ICT services

KEYWORDS:

• L80
• С21
• R30

Notes

1 Decision №110 of the Eurasian Economic Commission, "On approval of the list of sectors (subsectors) of services in which a single services market operates within the framework of the Eurasian Economic Union," 2014. [Online]. Available: http://pravo.eaeunion.org/SESSION/PILOT/main.htm (accessed October 15, 2018).

2 National Bank of Kazakhstan, Balance of Payment 2019. [Online]. Available: https://nationalbank.kz/?docid=199&switch=english (accessed August 27, 2019).

3 World Bank. World Development Indicators. [Online]. Available: https://databank.worldbank.org/ (accessed August 30, 2019).

4 CEPII Research and expertise on the world economy. Data. GeoDist [Online]. Available: http://www.cepii.fr/CEPII/en/bdd_modele/presentation.asp?id=6 (accessed August 30, 2019).