ARMENIA AS A LANDLOCKED STATE: TRANSIT OPPORTUNITIES

Ashot YEGHIAZARIAN


Ashot Yeghiazarian, Ph.D. (Econ.), Assistant Professor at the Armenian State Economic University (Erevan, Armenia)


ABSTRACT

Armenia does not have direct access to the sea, and its land transportation opportunities are limited due to the conflict with Azerbaijan and its support by Turkey.

Armenia is extremely transport-dependent on Russia. For example, JSC Russian Railways, which is essentially not interested in revolving the urgent problems of the countrys transportation system, is the concession operator of Armenias railways.

These complicated transportation and communication conditions create geopolitical and geo-economic threats for Armenia; if they are not dealt with, making successful basic changes and raising the countrys economic competitiveness will be inconceivable.

This article identifies the problems Armenias railway system faces and highlights regional transit issues from the perspective of the main development characteristics of landlocked countries.

Keywords: transportation, railways, shipping operations, transit, convention, concession, Armenia.

Introduction: Development Characteristics of Landlocked Countries

Back in their time, the founders of classical economic theory Adam Smith and David Ricardo noted that in addition to how market mechanisms affect the development of the national economy, a countrys geographic location and sea coasts are also of great importance, that is, whether it has access to global trade routes.

Much has changed in the world since then. The development of different forms of transport and the extensive use of contemporary information technology have reduced the advantages of littoral states. However, shipping operations by sea continue to play a central role in world trade. This means that a countrys geographic location is still important in terms of its national competitiveness.

Isolation and remoteness from the world markets, high transportation and transit costs, complicated border-crossing procedures, expensive banking services, and other factors limit the participation of.


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