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

Listed author(s):
  • Céline Carrere

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I)

  • Christopher Grigoriou

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I)

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.

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Paper provided by HAL in its series Working Papers with number halshs-00556941.

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Date of creation: 18 Jan 2011
Handle: RePEc:hal:wpaper:halshs-00556941
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00556941
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  1. Michael Faye & John McArthur & Jeffrey Sachs & Thomas Snow, 2004. "The Challenges Facing Landlocked Developing Countries," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(1), pages 31-68.
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  13. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
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  16. Raballand, Gael & Kunth, Antoine & Auty, Richard, 2005. "Central Asia's transport cost burden and its impact on trade," Economic Systems, Elsevier, vol. 29(1), pages 6-31, March.
  17. Friedman, Eric J. & Johnson, Simon, 1997. "Dynamic Monotonicity and Comparative Statics for Real Options," Journal of Economic Theory, Elsevier, vol. 75(1), pages 104-121, July.
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