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Landlockedness, infrastructure and trade : new estimates for central Asian countries

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  • Grigoriou, Christopher

Abstract

This paper assesses the impact of internal infrastructure and landlockedness on Central Asian trade using a panel gravity equation estimated on a large sample of countries (167 countries over 1992-2004). The panel structure of the dataset makes it possible to control for country-pair specific effects (asopposed to the usual importer and exporter effects) that would otherwise be captured by the coefficients of time-invariant variables such as distance or landlockness. Our findings highlight the need to pursue a dual policy agenda. First, transit corridors are regional public goods and should be managed as such through international cooperation. International Financial Institutions can -and do- play a key role in this regard through assistance, coordination and policy dialogue. Second, the Central Asian countries should actively seek diversification of their transit corridors to prevent the creation or maintenance of monopoly positions in transit and bottleneck points such as trans-shipment platforms.

Suggested Citation

  • Grigoriou, Christopher, 2007. "Landlockedness, infrastructure and trade : new estimates for central Asian countries," Policy Research Working Paper Series 4335, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4335
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Keita, Moussa, 2016. "Does ICT Development Flatten the Globe? Evidence from International Trade Costs Data," MPRA Paper 69882, University Library of Munich, Germany.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    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. ARMAN MAZHIKEYEV & Huw Edwards, 2015. "Consequences Of Asymmetric Deeper Eurasian Economic Integration," EcoMod2015 8365, EcoMod.
    12. 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.
    13. 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).
    14. 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.
    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

    Transport Economics Policy&Planning; Common Carriers Industry; Transport and Trade Logistics; Economic Theory&Research; Free Trade;

    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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