Economic Growth in Developing Countries: Is Landlockedness Destiny?

Abstract

This paper examines the determinants of economic growth in developing countries within the standard growth regression framework, with special attention being paid to the experience of landlocked developing countries (LLDCs). The results confirm that the landlockedness hampers economic growth, but the magnitude of negative impact is sensitive to alternative estimation methods. However, the analysis suggests that good governance, trade openness and coordinating infrastructure development with neighbours explain the significant aspect of the inter-country differences in growth rates among LLDCs. The results also suggest that African landlocked countries are not different from the other LLDCs. Contrary to the “resource curse” hypothesis, natural resources seem to contribute to economic growth of LLDCs. Show more