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South-South Trade: Theory, Evidence, Policy

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Author Info

  • Greenaway, David
  • Milner, Chris R

Abstract

Recently a number of commentators have argued that trade policy in developing countries should be deployed discriminatorily to encourage the expansion of trade among southern countries. Such a strategy is seen as being central in the framing of a new international economic order. This article evaluates the arguments in favor of a relative expansion of South-South trade and reviews the experience of developing countries with discriminatory regional trading arrangements. It contends that the case for specific policies to promote South-South trade is not convincing and that experience with discriminatory arrangements is not encouraging. The expansion of South-South trade can be expected to continue in the contextof multilateral trade expansion, and the potential gains are likely to be greater if the process is allowed to evolve freely in a multilateral setting. Copyright 1990 by Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal World Bank Research Observer.

Volume (Year): 5 (1990)
Issue (Month): 1 (January)
Pages: 47-68

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Handle: RePEc:oup:wbrobs:v:5:y:1990:i:1:p:47-68

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Cited by:
  1. Souleymane Coulibaly & Lionel Fontagné, 2004. "South – South Trade: Geography Matters," Working Papers 2004-08, CEPII research center.
  2. Erzan, Refik, 1989. "Would general trade liberalization in developing countries expand South-South trade?," Policy Research Working Paper Series 319, The World Bank.
  3. Shafaeddin, Mehdi, 2010. "The rationale for South-South trade; An Alternative Approach," MPRA Paper 26354, University Library of Munich, Germany.
  4. Shafaeddin, Mehdi, 2010. "The Role of China in Regional South-South Trade in Asia-Pacific: Prospects for industrialization of the low-income countries," MPRA Paper 26358, University Library of Munich, Germany.
  5. Shafaeddin, Mehdi, 2008. "South-South Regionalism And Trade Cooperation In The Asia-Pacific Region," MPRA Paper 10886, University Library of Munich, Germany.

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