This study analyses the comparative trade costs faced by landlocked developing countries (LLDCs) using both non-parametric and parametric techniques. The trade cost is analysed for one commodity in each of the four LLDCs covered: Lao People's Democratic Republic (maize); Ethiopia (coffee); Mongolia (meat); and Uzbekistan (processed fruits).
The study also explores the sectoral trade costs for the agriculture sector of LLDCs.
The analysis finds that:
- The international markets for each of these individual products is different in terms of size and openness.
- Landlocked countries typically have higher trade costs that other countries, but the impact of such costs on trade competitiveness varies depending on the product exported and the geographic pattern of trade of each country.
These results imply that integration into regional trade areas and active use of trade policy by the authorities of LLDCs could be a fundamental tool to reduce the negative effect of geography in these countries.
