Export performance in developing countries: A comparative perspective

Landlockedness imposes additional costs on trade and reduces the international competitiveness. This paper examines the determinants of export performance of landlocked developing countries (LLDCs) compared to other developing countries using the standard gravity modelling framework. The results suggest that, despite recent trade policy reforms, the overall export performance of LLDCs is poorer than that of other developing countries because of the inherent additions trade cost associated with landlockedness. The conventional wisdom that export performance is aided by economic openness also applies to LLDCs, but the distance related trade costs has a greater negative impact on exports from LLDCs compared to the other developing countries. The immediate trade policy challenge for landlocked developing countries is therefore to create a more trade-friendly environment by improving the quality of trade-related infrastructure and logistics.