Introduction: LLDCs’ need for export diversification

Abstract

Maritime transport is the backbone of international trade and the global economy. Around 80 per cent of global trade by volume and over 70 per cent by value are carried by sea and are handled by ports worldwide (UNCTAD, 2018a). These facts immediately raise questions about trade from landlocked countries, which are countries that face special challenges stemming from their lack of territorial access to the sea, geographical remoteness and isolation from major world ports and markets. For landlocked countries, global trade must inherently transit through other countries – a process which often involves dealing with neighbouring countries, cumbersome border-crossing procedures, and administrative hassles. These challenges intensify even more if both the landlocked and transit countries are developing economies with limited resources for investment in trade-related transport infrastructure. These difficulties substantially increase transport and trade transaction costs for Landlocked Developing Countries (LLDCs) undermining their export competitiveness and participation in regional and global value chains.