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Towards development in landlocked economies

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  • Cárcamo-Díaz, Rodrigo

Abstract

This paper sets out with three objectives. Firstly, it reviews the theoretical and empirical literature on the relationship between the condition of being a landlocked developing country and the degree of economic development attained, measured by per capita income. Secondly, it contributes to the theoretical literature on the subject by suggesting a new possible reason why landlocked countries may have a low level of development: the greater relative uncertainty to which landlockedness gives rise may have a negative effect on investment incentives in the tradable sector of such countries. Thirdly, it suggests that development policy for landlocked countries should focus on investment in transport infrastructure and on regional integration.

Suggested Citation

  • Cárcamo-Díaz, Rodrigo, 2004. "Towards development in landlocked economies," Macroeconomía del Desarrollo 5393, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col037:5393
    Note: Includes bibliography
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    File URL: http://repositorio.cepal.org/handle/11362/5393
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    References listed on IDEAS

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    1. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, April.
    2. MacKellar, Landis & Woergoetter, Andreas & Woerz, Julia, 2000. "Economic Development Problems of Landlocked Countries," Transition Economics Series 14, Institute for Advanced Studies.
    3. -, 2003. "Preliminary Overview of the Economies of Latin America and the Caribbean 2003," Balance Preliminar de las Economías de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 960 edited by Eclac.
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