Mr. Zekria Taj, Dr. Nassir Ul Haq Wani

Volume 2 Issue 2 | Jun 2019

DOI: 10.31841/KJEMS.2021.55

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Abstract

This study uses Constant-Market-Share (CMS) analysis technique to examine Afghanistan’s export performance focusing on dynamic aspects of the pattern of the trade specialization, feasibility and relevance of export market share in improving Afghanistan’s export competitiveness and the role of structural factors that lead to concentrating exports on commodities and markets. The recently developed UNIDO method has been applied to Afghanistan’s merchandise exports during the 2005-2017 periods. WITS database has been utilized, covering 5 countries (Pakistan, China, India, Iran and United Arab Emirates) and 10 products defined at the SITC Rev 3 –digit level. The results show that the increase in Afghanistan’s world export market share was partially caused by the relatively favorable competitiveness effect. The remaining effects of almost all structural static and dynamic factors were positive but some had only a limited influence. Afghanistan was less successful in directing its geographic specialization pattern toward those regions with fast growing demand, in comparison with those commodities. Although Afghanistan has enjoyed some flexibility and was somewhat dynamically efficient in changing its international specialization pattern in accordance with world import demand, its exports remained concentrated in low and medium sectors.