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Not everything can be exported

October 20, 2020

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Aliya Kussainova

analyst

Export remains a hot topic in Kazakhstan. For example, in a message dated September 1, the President instructed to identify key export priorities. There were also more specific instructions in the form of a 2-fold increase in the export of agricultural products.

How easy is it and will everything produced be exported? We propose to deviate a little from the plans of the state and turn to the global indicators of industries - how much are they generally tradable? This means the share of foreign trade in world production.

Therefore, the most traded are, as expected, the manufacturing industry and logistics. The top 3 consists of electronics and electrical equipment manufacturing, water transport and “other finished goods” manufacturing.

Globally least traded service industries. From the real sector, the lowest indicators are for construction and building materials, as well as agriculture. For obvious reasons, the first 2 industries are local: manufacturers of building materials are close to construction due to the complexity of logistics.

As for agriculture (excluding the food industry), only 13% of the world's grown produce is exported to other countries. Interestingly, the tradability of the next redistribution - the food industry - is 18%. In fact, only about 1/6 of the world's agricultural products are exported on average. Of course, there are 100% export cases in almost any industry. But on a national scale and entire industries with turnover of billions of dollars, this is difficult to implement. This is not due to insufficient government motivation, but to explicit and implicit natural barriers - from geographical remoteness and the availability of high-quality transport infrastructure to understanding consumer habits and the accumulation of other specialized knowledge by local suppliers.

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