Causes of Deficit in Trade Balance and Its Effects on the Economy of Afghanistan


Authors : Mamordin Mangal

Volume/Issue : Volume 6 - 2021, Issue 2 - February

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/3s4s0nP

The deficit in the trade balance is the major problem for Afghanistan. The purpose of this article is to identify the causes of deficit in the trade balance of Afghanistan and develop effective policies to reduce, prevent and eliminate the deficit in the trade balance. for this study, we use primary data as well as secondary data collected from the world bank, IMF, ministry of finance, ministry of economics, NSIA, and some national and international organizations. Our finding is that lower tariffs, low productivity, insecurity, warlord and mafia, stabilization of taxes, lack of good management, and culture of exemption are the major causes of trade balance deficit in Afghanistan. Deficit of trade balance has negative effects on the economy of Afghanistan.

Keywords : Trade Balance Deficit, Unemployment, Money Outflow, Afghanistan economics, Instability

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