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Research Article

Vol. 1 No. 1 (2025): International Journal of Multidisciplinary Research

SCO: Injecting a “Stimulant” into Regional Trade Facilitation and Export Growth

Submitted
October 10, 2025
Published
2025-10-13 — Updated on 2025-10-14

Abstract

Abstract: The Shanghai Cooperation Organization (SCO) has evolved from a security-centric bloc into a potent catalyst for trade facilitation and export growth across Eurasia. Leveraging a unique combination of hard infrastructure (Belt & Road corridors), soft institutional reforms (bilateral FTAs, harmonised customs), and digital platforms, the SCO is acting as a stimulant that accelerates regional integration. Using panel data (2003-2024) and a difference-in-differences augmented-gravity framework, we show that full SCO membership raises member-to-member exports by 12–18 % on average, with manufacturing and agri-processing sectors gaining most. The effect is strongest where (i) B&R transport projects are completed, (ii) bilateral FTAs are in force, and (iii) one-stop trade portals (e.g., SCODA) lower documentary compliance time by ≥ 50 %. We conclude that the SCO’s stimulant function is replicable for other regions, provided geoeconomic trust and complementary domestic reforms are maintained.

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