Impact of Landlockedness on Export: An Analysis on Developing Europe and Central Asia Countries

The landlocked countries are the ones facing economical problems due to the geographical disadvantages they have. The high transportation costs, and accordingly the low trade volüme, dependence on the transit countries, insufficiency of the transport infrastructure restrict the economic activites in these countries. Indeed, a significant majority of the landlocked countries are included in the category of developing countries. In the study, by examining the literature related with the developing landlocked countries, the major problems of these countries have been discussed. Later, the effect of this geographical location disadvantage that the landlocked countries have in their export has been analyzed with panel data model in the peculiarity of developing European and Central Asian Countries. For the panel data analysis, initially the stability of the series have been tested with appropriate root tests. Later on, the most appropriate model has been chosen by separately estimating the models of pooled regression, two-way fixed effects and two-way random effects. Comments and assessments have been made according to the parameters obtained from the chosen model.