The Impact of Mobility Restrictions on Trade Facilitation at Borders: Lessons from the COVID-19 Pandemic in Central Asia

Abstract

During the coronavirus disease 2019 (COVID-19) pandemic, mobility restrictions had a significant impact on trade times and costs at the borders, particularly in landlocked developing countries. This paper examines the effect of COVID-19 mobility measures on the time required for cargo to clear the borders, using monthly bilateral time measures at the border crossing points (BCPs) of Central Asia Regional Economic Cooperation countries. An estimation of impulse response functions reveals that the time for inbound cargo to clear the border increased by up to 40% when the most stringent mobility restrictions were implemented. However, the results indicate that the time for outbound cargo was not significantly affected. Furthermore, our findings demonstrate the cross-border spillover effect of a trading partner’s mobility measures. Both inbound and outbound times at own-BCPs increased when a trading partner implemented tightened mobility restrictions. These findings emphasize the need for enhanced policy coordination and monitoring among trade partners during emergencies, providing valuable insights for border management strategies.

Keywords

• Central Asia Regional Economic Cooperation Program
• COVID-19 pandemic
• impulse response
• spillover effects
• trade facilitation