Resource Endowment, Institutional Quality, and Ease of Doing Business as Drivers of Economic Outcomes in Landlocked Economies

Landlocked countries face distinct physical and institutional challenges that significantly influence their economic growth trajectories. This study analyzes the factors driving growth in 44 landlocked nations from 1998 to 2023, considering their vulnerability to global shocks. The results indicate that institutional quality and the Ease of Doing Business (EDB) index are crucial drivers of growth. Specifically, political stability and lower levels of violence strongly promote growth. At the same time, higher business costs, as reflected in the EDB index, tend to decrease GDP per capita growth—mainly by deterring foreign direct investment. Policy recommendations emphasize strengthening institutions and the business environment, investing in human capital and technology, and leveraging trade liberalization and containerization to foster sustainable growth in landlocked least developed countries.