Export performance of developing countries: Does landlockedness matter?

Ramesh Paudel, Arusha Cooray

    Research output: Contribution to journalArticle

    Abstract

    Landlockedness imposes additional costs on trade and reduces international competitiveness. This paper examines the determinants of export performance in developing countries, within a comparative perspective of landlocked developing countries (LLDCs) and non-landlocked developing countries, by using a standard gravity modeling framework. The study covers data from 1995 to 2015. The results suggest that despite recent trade policy reforms, the overall export performance of LLDCs is lower than that of non-landlocked developing countries due to the inherent additional trade costs associated with landlockedness. The conventional wisdom that export performance is aided by economic openness also applies to LLDCs, but distance-related trade costs have a greater negative impact on exports from LLDCs than on other developing countries. The immediate trade policy challenge for LLDCs is therefore to create a more trade-friendly environment by lowering tariffs, reforming exchange rates and entering into regional trade agreements.
    Original languageEnglish
    Pages (from-to)36-62pp
    JournalReview of Development Economics
    Volume22
    Issue number3
    DOIs
    Publication statusPublished - 2018

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