Suchergebnisse

Increased participation in global value chains is firmly related to the engagement of local producers in international markets through increasing sales in these markets. This study aims to examine factors affecting export performance of SMEs in the Kyrgyz Republic. Empirical estimations based on the Enterprise Survey data set reveal that correspondence with quality requirements, increasing participation of foreign capital in ownership of firms, availability of financial resources, and labor productivity are important determinants of exporting activities of SMEs. Along with this, firms in industries with a low technology level demonstrate relatively higher export activities. However, it can also be argued that SMEs do not have enough capability to adopt medium and high technology in their production process, which may lead to concern over the long-term sustainability of their competitiveness in international markets. These findings underline that government policy towards enhancing labor productivity, foreign capital participation associated with the higher availability of financial resources, and knowledge-supporting programs are important for the export of SMEs in the Kyrgyz Republic.

This study examines the impact of the Osh-Sarytash-Irkeshtam and Sarytash-Karamyk road construction projects in the Kyrgyz Republic on regional social and economic development. Discussions of financing infrastructure in the Kyrgyz Republic context are also provided. Evaluation of impact is based on estimations from the panel dataset for the period 2005-2017 using both regional and district-level information. The findings indicate that the road construction projects had a positive effect on poverty reduction and retail trade growth, which was especially evident in the sample of two mountainous districts. The long-term sustainable economic effects of road construction require the creation of a business ecosystem along the road. International road construction should be accompanied by external trade promotion initiatives and the reduction of barriers at borders. The efficiency of road infrastructure also depends on improved regional cooperation, which necessitates consideration of the road not only as a transit or transport corridor, but also more comprehensively as an economic corridor with a potential wider economic effect. The development of public-private partnership for infrastructure investment is another strategic direction for government policy, which should be associated with policies to decrease regulatory burden, private investment risk, and increase institutional development.

Banking in transition economies differs from developing and developed economies with market system. This study aims to review development of the banking system in Kyrgyzstan since independence. The period under consideration is divided into five stages, each of which has a main distinctive aspect. Despite considerable achievements in last fifteen years the banking system still remains vulnerable to external shocks. Moreover, insufficient institutional infrastructure is one of the fundamental factors retarding further development of the banking system.

This study aims to examine the impact of infrastructure on firm performance in nine CAREC countries: Afghanistan, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, and Uzbekistan. Empirical analysis is based on the enterprise survey for 2009, 2013, and 2019. Infrastructure is measured by the duration of power outages, electricity expenses as the share of total sales, access to broadband internet and efficiency of customs. Firm performance was measured by total sales, share of utilized capacity, dummy variable if firm exports, and the share of export sales. Results indicate that firm performance measured through sales and capacity utilization is negatively affected by the duration of power outages and electricity expenses. Moreover, access to broadband internet significantly increases the total sales and export sales of small firms, while efficiency of customs increases the exporting activities of medium and large firms. These findings underline that for the development of private sector and international trade in CAREC countries, sustainable access to, and quality of, electricity, telecommunications, and customs efficiency are important objectives for government policy.

This paper examines whether remittances from international migration impact on the occupational choice of left-behind youth in Kyrgyzstan. Labor supply is analyzed both at the extensive and intensive margins using cross-sectional data for 2011. To overcome endogeneity concerns, an instrumental variable approach was implemented. Findings demonstrate that migration, rather than remittances, pushes the left-behind youth to become unpaid family workers. This is explained by the substitution effect as the youth left behind are called upon to replace the migrant labor. Moreover, this effect is heterogeneous – female youth are more inclined to becoming unpaid family workers both at the extensive and intensive margins.