World Bank2013-04-182013-04-182012-11https://hdl.handle.net/10986/13215Trade enables countries to import ideas and technologies, realize comparative advantages and economies of scale, and foster competition and innovation, which in turn increases productivity and achieves higher sustainable employment and economic growth. Countries open to international trade tend to provide more opportunities to their people, and grow faster. Afghanistan could derive far more benefit from its international trade opportunities than it does at present. This Diagnostics Trade Integration Study (DTIS) report is intended to identify concrete policy actions in three areas of endeavor: lowering the transaction costs of trade, increasing Afghanistan's competitiveness in world markets, and providing an analytical foundation for Afghanistan's national trade strategy. The study examines how to do this, looking not only at trade performance and policy, but also at three sectors with great export potential: agriculture, gemstones and carpets, as well as the investment climate, customs as a driver of trade facilitation, and on promoting infrastructure services. All five chapters in this report provide a detailed and comprehensive analysis of trade issues intended to reduce the transaction costs of trade. Growth in Afghanistan has been strong and volatile because of its heavy reliance on agriculture. Now it faces a transition: prospects of a drawdown of international military forces and a decline in civilian aid by 2014. Security issues and political instability could undermine Afghanistan's Transition. Such threats could harm not only economic growth, but deterioration would repel private-sector investment.en-USCC BY 3.0 IGOABSORPTIVE CAPACITYADVERSE EFFECTADVERSE IMPACTSAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTSAGRICULTUREAPPARELAPPLIED TARIFFARBITRAGEAVERAGE TARIFFAVERAGE TARIFFSBALANCE OF PAYMENTSBARRIERS TO TRADEBASKET OF GOODSBENCHMARKSBILATERAL AGREEMENTSBORDER TRADEBUSINESS CLIMATEBUSINESS ENVIRONMENTCAPACITY BUILDINGCAPITAL ACCUMULATIONCENTRAL BANKCERTAIN EXTENTCHEMICAL FERTILIZERSCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE POSITIONCOMPETITIVENESSCOMPETITIVENESS OF FIRMSCONSUMER PROTECTIONCONSUMERSCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCUSTOMSCUSTOMS ADMINISTRATIONCUSTOMS DUTIESCUSTOMS DUTYCUSTOMS OFFICIALSCUSTOMS PROCEDURESCUSTOMS REVENUECUSTOMS REVENUESCUSTOMS VALUATIONDEBTDEMAND FOR GOODSDEVELOPING COUNTRIESDEVELOPMENT POLICYDEVELOPMENT STRATEGYDISCLOSURE REQUIREMENTSDISPUTE RESOLUTIONDISTORTIONARY EFFECTSDISTRIBUTION COSTSDOMESTIC INDUSTRIESDOMESTIC PRODUCTIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICYECONOMIES OF SCALEEMPIRICAL EVIDENCEEMPIRICAL STUDIESENVIRONMENTALENVIRONMENTAL IMPACTSENVIRONMENTAL PROTECTIONEQUILIBRIUMEXPORT BASEEXPORT COMPETITIVENESSEXPORT COSTSEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORT MARKETEXPORT MARKETSEXPORT OPPORTUNITIESEXPORT PERFORMANCEEXPORT PROMOTIONEXPORT PROMOTION AGENCYEXPORT RATIOEXPORT SECTORSEXPORT SUPPORTEXPORT TRADEEXPORTERSEXPORTSFINANCIAL MANAGEMENTFINANCIAL SECTORFISHFOREIGN DIRECT INVESTMENTFOREIGN MARKETSFOREIGN TRADEFREE ACCESSFREE TRADEFREE TRADE AREAGDPGDP PER CAPITAGLOBAL MARKETSGRAVITY MODELGRAVITY MODELSGROWTH POTENTIALGROWTH PROJECTIONSHUMAN CAPITALIMPORT DUTIESIMPORT LICENSESIMPORT LICENSINGIMPORT TAXESIMPORT VALUEIMPORT VALUESIMPORTSINCOMEINCOMESINTERNATIONAL BEST PRACTICEINTERNATIONAL MARKETSINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVENTORYINVESTMENT CLIMATEINVESTOR PROTECTIONJOB CREATIONLABOR FORCELDCSLEGAL FRAMEWORKLIFE EXPECTANCYLIMITED LIABILITY COMPANIESLOBBYINGLOW TARIFFSMACROECONOMIC CONDITIONSMACROECONOMIC FACTORSMARKET ACCESSMARKET COMPETITIONMONETARY POLICYMUTUAL RECOGNITIONNEW MARKETSNEW PRODUCTNEW PRODUCTSOILOPEN ECONOMIESPOLICY DECISIONSPOLICY ENVIRONMENTPOLLUTIONPOPULATION GROWTHPOSITIVE EXTERNALITIESPREFERENTIAL AGREEMENTSPRICE FLUCTUATIONSPRIVATE SECTOR DEVELOPMENTPRODUCERSPRODUCTION COSTSPROFIT MARGINSPUBLIC GOODSQUALITY STANDARDSQUANTITATIVE RESTRICTIONSRAPID ECONOMIC GROWTHREAL GDPREDUCTION IN TARIFFSREFRIGERATIONREGIONAL INTEGRATIONREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGULATORY FRAMEWORKRESOURCE MANAGEMENTRETAIL TRADERULES OF ORIGINSOCIAL WELFARESUSTAINABILITY ANALYSISSUSTAINABLE EXPLOITATIONTARIFF CLASSIFICATIONTARIFF DISPERSIONTARIFF LINETARIFF LINESTARIFF POLICYTARIFF RATETARIFF RATESTARIFF REDUCTIONTARIFF REFORMTARIFF REVENUETARIFF SCHEDULETARIFF STRUCTURETAXTAX RATETAX RATESTAXATIONTECHNICAL ASSISTANCETECHNICAL COMMITTEESTECHNICAL REGULATIONSTELECOMMUNICATIONSTERMS OF TRADETOTAL OUTPUTTOTAL REVENUETRADE AGREEMENTTRADE BALANCETRADE BARRIERSTRADE COOPERATIONTRADE COSTSTRADE DATATRADE DEFICITTRADE DEVELOPMENTTRADE DISTORTIONSTRADE FACILITATIONTRADE FLOWSTRADE IN SERVICESTRADE INDICATORSTRADE INFORMATIONTRADE INTEGRATIONTRADE ISSUESTRADE MORETRADE NEGOTIATIONTRADE PARTNERTRADE PERFORMANCETRADE POLICYTRADE REFORMTRADE REGIMESTRADE STRATEGYTRADE VALUETRANSACTION COSTSTRANSPORT COSTSUNEMPLOYMENTUNSKILLED LABORVALUATIONVALUE ADDEDVALUE OF EXPORTSWAGESWEALTHWORLD MARKETSWORLD TRADEWTOWorld Bank10.1596/13215