High costs and time delays at border crossing points (BCPs) of most Central Asia Regional Economic Cooperation (CAREC) countries additional burdens on trade performance. To explore how trade facilitation measures at BCPs improve trade generation of CAREC countries, this study uses structural and spatial gravity models using the Corridor Performance Measurement and Monitoring (CPMM) dataset for CAREC member countries. The paper reinforces the traditional gravity findings that similarities in languages, colonial history, and large trade volumes are conducive to trade growth. This study also finds that electronic sanitary and phytosanitary (e-SPS) certification can facilitate increased trade. Implementing e-SPS certification expedites clearance times and reduces costs incurred at BCPs.

In addition, trade agreements—such as regional and free trade agreements and preferential trade agreements—facilitate trade at the BCPs of participating countries. The study found that subnational trade facilitation measures in neighboring areas also generate additional regional trade. The results suggest that trade analysis could consider spatial association.