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Landlockedness, Infrastructure and Trade:New Estimates for Central Asian Countries

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  • Christopher GRIGORIOU

    () (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Céline CARRERE

    () (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

Abstract

This 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.

Suggested Citation

  • Christopher GRIGORIOU & Céline CARRERE, 2008. "Landlockedness, Infrastructure and Trade:New Estimates for Central Asian Countries," Working Papers 200801, CERDI.
  • Handle: RePEc:cdi:wpaper:944
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    Cited by:

    1. United Nations ESCAP (ed.), 2011. "Asia-Pacific Trade and Investment Report 2011: Post-crisis trade and investment opportunities," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number aptir2596.
    2. Subarna Basnet, 2017. "Institutions and Economic Growth of Landlocked Nations – part of dissertation," CEsA Working Papers 156, CEsA - Center for African, Asian and Latin American Studies.
    3. Céline Carrère & Christopher Grigoriou, 2014. "Can Mirror Data Help To Capture Informal International Trade?," UNCTAD Blue Series Papers 65, United Nations Conference on Trade and Development.
    4. Shepherd, Ben & Wilson, John S., 2006. "Road infrastructure in Europe and Central Asia : does network quality affect trade ?," Policy Research Working Paper Series 4104, The World Bank.
    5. Bakar Normizan & Ishii Yasunori, 2014. "Export Competition between Landlocked and Coastal Countries: An Analysis of Strategic Export Policies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 804-812, November.
    6. Normizan Bakar, 2013. "Optimal transport and trade policy under Bertrand competition in the presence of restricted geographical condition," International Conference on Energy, Regional Integration and Socio-economic Development 6004, EcoMod.
    7. World Bank, 2011. "Challenges to Enterprise Performance in the Face of the Financial Crisis : Eastern Europe and Central Asia," World Bank Publications, The World Bank, number 2316, April.
    8. Kurmanalieva, Elvira & Vinokurov, Evgeny, 2011. "Holding together or falling apart:Results of gravity equation of the CIS trade," MPRA Paper 32003, University Library of Munich, Germany.
    9. Celbis, Mehmet Güney & Nijkamp, Peter & Poot, Jacques, 2013. "How big is the impact of infrastructure on trade? Evidence from meta-analysis," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Zafari, Khurshid & Ismailov, Azamat, 2016. "LANDLOCKEDNESS –INTERNATIONAL TRADE –FOOD SECURITY:Do landlocked countries suffer from food insecurity?," Samarkand Conference 2016 250075, Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    11. Irena Mikolajun & Richard Paap & Jean-Marie Viaene & Olga Zelenko, 2016. "Trade Policy Options of Ukraine: East or West," Tinbergen Institute Discussion Papers 16-057/VI, Tinbergen Institute.
    12. Keita, Moussa, 2016. "Does ICT Development Flatten the Globe? Evidence from International Trade Costs Data," MPRA Paper 69882, University Library of Munich, Germany.
    13. ARMAN MAZHIKEYEV & Huw Edwards, 2015. "Consequences Of Asymmetric Deeper Eurasian Economic Integration," EcoMod2015 8365, EcoMod.
    14. Lahiri, Bidisha & Masjidi, Feroz K., 2012. "Landlocked Countries: A Way to Integrate with Coastal Economies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 505-519.
    15. Ramesh C Paudel, 2014. "Export performance in developing countries: A comparative perspective," Departmental Working Papers 2014-26, The Australian National University, Arndt-Corden Department of Economics.
    16. Mazhikeyev, Arman & Edwards, T. Huw & Rizov, Marian, 2015. "Openness and isolation: The trade performance of the former Soviet Central Asian countries," International Business Review, Elsevier, vol. 24(6), pages 935-947.

    More about this item

    Keywords

    Central Asia; Landlockedness; Trade; Transport Infrastructure; Panel data;

    JEL classification:

    • 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

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