Economic Growth in Developing Countries: Is Landlockedness Destiny?
AbstractThis paper examines the determinants of economic growth in developing countries within the standard growth regression framework, with special attention being paid to the experience of landlocked countries. The results confirm the findings of previous studies that landlockedness hampers economic growth, but the magnitude of negative impact is sensitive to alternative estimation methods. However, the analysis suggests that good governance, trade-openness, and coordinating infrastructure development with neighbours explain the significant aspect of the inter-country differences in growth rates among landlocked developing countries (LLDCs). The results also suggest that African landlocked are not different from the other LLDCs. Contrary to the 'resource-curse' hypothesis, natural resources seem to contribute to economic growth of LLDCs.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2014-01.
Length: 43 pages
Date of creation: 2014
Date of revision:
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Landlocked Countries; Economic Growth; Governance; Hausman-Taylor Estimation;
Find related papers by JEL classification:
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-30 (All new papers)
- NEP-DEV-2014-03-30 (Development)
- NEP-GRO-2014-03-30 (Economic Growth)
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