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Integrating Landlocked Developing Countries into international trading system through trade facilitation

This study empirically investigates how the quality of trade facilitation (both on-theborder and behind-the-border factors) in landlocked developing countries (LLDCs) and in their transit countries impacts LLDC trade. It uses an augmented gravity model incorporating trade facilitation variables. Two sets of gravity models are estimated, one to explain LLDC exports and the other to explain LLDC imports. The main contribution of this study is the consideration of trade facilitation environment in both LLDCs and transit countries. Two sets of trade facilitation variables are used: the logistics performance index (LPI) and its six indicators; and two aggregate governance indicators combining, respectively, all and three of the six governance indicators developed by Daniel Kaufmann, Aart Kraay and Massimo Mastruzz for the World Bank...

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