2012
DOI: 10.11130/jei.2012.27.4.505
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Landlocked Countries: A Way to Integrate with Coastal Economies

Abstract: We consider some of the important economic constraints faced by landlocked economies in a game theoretic framework that involves its neighbor that has access to the ocean. We identify the strengths that the landlocked economy might have or develop through policy in order to negotiate with its neighbor. The model is an infinitely repeated game between two asymmetric economies, with the threat of reversion to Nash equilibrium if an economy deviates from the cooperative agreement. We find that sustainable coopera… Show more

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Cited by 17 publications
(15 citation statements)
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References 12 publications
(6 reference statements)
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“…Therefore, coastal countries tend to have lower GDP growth per capita. Growth theory emphasises that when a country is landlocked, it tends to have high levels of GDP growth compared with coastal countries (Esfahani & Ramıŕez, 2003;Faye et al, 2004;Masjidi & Lahiri, 2012).…”
Section: Results Of the Efi Indexmentioning
confidence: 99%
See 1 more Smart Citation
“…Therefore, coastal countries tend to have lower GDP growth per capita. Growth theory emphasises that when a country is landlocked, it tends to have high levels of GDP growth compared with coastal countries (Esfahani & Ramıŕez, 2003;Faye et al, 2004;Masjidi & Lahiri, 2012).…”
Section: Results Of the Efi Indexmentioning
confidence: 99%
“…9; of incorporating the dummy variable in the model is that coastal countries benefit more from trade and lower transportation costs. Voluminous Empirical growth studies utilise this dummy variable and they find that a country being landlocked has a negative effect on growth (Sachs & Warner, 1997;Gallup et al, 1999;Dowrick & Golley, 2004;Bosker & Garretsen, 2009;Bidisha & Feroz, 2012).…”
Section: Dummy Variablesmentioning
confidence: 99%
“…According to Lahiri and Masjidi (2012) approximately 20% of the countries in the world are landlocked; they are distributed as approximately 40% of the world's low income economies and less than 10% in the world's high income countries. No country could survive without an outlet to the sea, thus, there are certain privileges being landlocked according to the UN charter (Sinjela 1982, UN 2009).…”
Section: Why Water-energy-food Linking Approach In Mountainous Landlomentioning
confidence: 99%
“…About two and half centuries before it was depicted that landlocked country remains deprivation of wealth (Smith 1776, Faye et al 2004, Lahiri and Masjidi 2012. The facts still remains almost the same as human development report has shown the group of landlocked countries among the least developed ones (UNDP 2012, FAO 2014.…”
Section: Introductionmentioning
confidence: 99%
“…Arvis et al (2010) estimate that landlocked countries in general face a cost penalty ranging widely from 8 to 250 per cent and a time penalty in the range of 9 to 130 per cent compared to their coastal neighbours. On the one hand, Lahiri and Masjidi (2012) argue that landlocked economies should put a high priority on developing their infrastructure and domestic industries to make themselves more attractive as a transit route and a trade partner for coastal economies. On the other hand, diversification of transit options to several neighbours could potentially reduce the monopoly power of any single coastal neighbour in the bargaining process.…”
Section: Literature Reviewmentioning
confidence: 99%