Landlockedness, Infrastructure and Trade:New Estimates for Central Asian Countries
AbstractThis paper assesses the impact of internal infrastructure and landlockedness on Central Asian trade. The impact of landlockedness on Central Asian's trade costs is split into several components, using a panel gravity equation estimated on a large sample of countries (167 countries over 1992-2004). Our findings highlight that an improvement in the own infrastructure of Central Asian countries from the level of the median Central Asian country to that of other landlocked countries would raise exports (imports) by a modest 2.4% (3.1%). By contrast, an improvement in Central Asian transit-country infrastructure to the level of the other landlocked countries would raise the representative CAC's exports by a whopping 49%. Other dimensions of landlockedness considered in this study are also great impediments to trade. Either diminishing the extra overland costs or enhancing the ability to negotiate sea access would significantly increase Central Asian trade, ‘'transit monopolies'' (single transit corridors) reducing trade significantly.
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Date of creation: 18 Jan 2011
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Central Asia; Landlockedness; Trade; Transport Infrastructure; panel data;
Other versions of this item:
- Christopher GRIGORIOU & Céline CARRERE, 2008. "Landlockedness, Infrastructure and Trade:New Estimates for Central Asian Countries," Working Papers 200801, CERDI.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
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