Safi Elhamuddin

Measuring Geographical Disadvantage: the Case of Cross Boundary Trade Between Afghanistan and Pakistan Safi Elhamuddin

Afghanistan is a landlocked country which relies heavily on the road and air transport sub sector. The country mountain terrains, low quality infrastructure, and artificial and institutional barriers to trade add to geographical disadvantage of Afghanistan, and increased the cost of moving goods internationally. Pakistan and Iran provide Afghanistan the most direct route to the sea and international market through the ports of Karachi and Bandar Abbas respectively. In compare to Iran Pakistan has the most advantageous position in Afghan transit trade, by offering the most nearest route to international market through Karachi seaport. The fundamental object of this present research is to measure the geographical disadvantage of Afghanistan, and to estimate the total trucking cost between Afghanistan and Pakistan, and to indicate how distance, infrastructure, time, bribe, and geography increase the transport costs.