Influence of logistics systems on the development of international trade in the agricultural sector of Kyrgyzstan

Abstract

The purpose of this study was to analyse the role of logistics systems in ensuring the efficiency of foreign trade in Kyrgyzstan’s agricultural products. To fulfil this purpose, the study investigated the dynamics of Kyrgyzstan’s foreign trade in agricultural products in 2020–2024, with a focus on export and import growth, as well as investments in logistics infrastructure.

The methodology included a comprehensive approach combining economic and statistical methods, correlation and factor analysis, as well as modelling of development scenarios to assess the influence of logistics on international trade in the agricultural sector.

The study found that Kyrgyzstan is showing a steady increase in foreign trade in agricultural products, with exports growing from USD 2.5 billion in 2020 to USD 3.5 billion in 2024, indicating an improvement in the competitiveness of products in international markets.

Modernisation of the transport and logistics infrastructure has helped to reduce transportation costs and improve storage conditions, which has positively affected the exports of key agro-export commodities such as dried fruits, cotton, and dairy products.

The results of the correlation analysis (R = 0.9226) confirmed the existence of a strong positive relationship between the volume of investment in logistics infrastructure and the foreign trade turnover of the Kyrgyz agricultural sector.

However, the country faces serious challenges, such as bureaucratic barriers and an unstable economic situation, which limit its integration into global supply chains. To address these challenges, reforms in customs procedures, investments in road infrastructure, and the creation of modern logistics hubs are required to increase the competitiveness of agricultural products in international markets.