Measuring Geographical Disadvantage

Measuring Geographical Disadvantage

The Case of Cross Boundary Trade Between Afghanistan and Pakistan

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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 inte...