South-South Regionalism And Trade Cooperation In The Asia-Pacific Region
AbstractThis study of regional South-South (S-S) trade and cooperation in East, South and South-East Asian countries (ESSEA) aims to provide an economic rationale for S-S trade; shed some light on the extent and pattern of S-S trade in the ESSEA region; examine the dynamic forces behind the expansion of such trade, and its shortcomings and vulnerabilities; propose policies for enhancing and strengthening regional cooperation; and identify areas for further research. The main conclusion of the study is that, while the rapid expansion of trade among ESSEA countries has been mainly the result of industrialization and industrial collaboration in the form of production sharing, it has not been driven through the operation of market forces alone. South-South trade can also be used as a policy-driven vehicle for industrialization in lower-income countries, and is linked to the principle of dynamic comparative advantage. The resultant expansion of supply capabilities and diversification of the structure of production and trade, in turn, potentially leads to further expansion of S-S trade and to the geographical diversification of trade for the countries involved, with a positive impact on their bargaining power. However, enhancing S-S trade requires proactive policy measures for cooperation that go beyond tariff reduction and trade agreements. The paper begins by providing a rationale for S-S trade as a vehicle for promoting industrialization and development. It goes on to show that regional trade has expanded rapidly in ESSEA mainly through intra-industry trade in the form of production sharing in electrical and electronic products. The region has become not only the most dynamic area for S-S trade, but also a major force in international trade in general. Nevertheless, intraregional trade among ESSEA countries has led to three main developments that these countries need to consider collectively and address through joint policy initiatives in order to further promote industrialization and development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10886.
Date of creation: Aug 2008
Date of revision:
Trade; Trade policy; industrial policy; regionalism; South-south trade; China; Asia-Pacific;
Find related papers by JEL classification:
- N85 - Economic History - - Micro-Business History - - - Asia including Middle East
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- D20 - Microeconomics - - Production and Organizations - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- F00 - International Economics - - General - - - General
- F15 - International Economics - - Trade - - - Economic Integration
- N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- F10 - International Economics - - Trade - - - General
- L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard E. Baldwin, 2008.
"Managing The Noodle Bowl: The Fragility Of East Asian Regionalism,"
The Singapore Economic Review (SER),
World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
- Baldwin, Richard E., 2007. "Managing the Noodle Bowl: The Fragility of East Asian Regionalism," Working Papers on Regional Economic Integration 7, Asian Development Bank.
- Baldwin, Richard, 2006. "Managing the Noodle Bowl: The Fragility of East Asian Regionalism," CEPR Discussion Papers 5561, C.E.P.R. Discussion Papers.
- Scott L. Baier & Jeffrey H. Bergstrand & Erika Vidal, 2007. "Free Trade Agreements In the Americas: Are the Trade Effects Larger than Anticipated?," The World Economy, Wiley Blackwell, vol. 30(9), pages 1347-1377, 09.
- Sanjaya LALL, 2004.
"Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness,"
G-24 Discussion Papers
28, United Nations Conference on Trade and Development.
- Sanjaya Lall, 2013. "Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness," Annals of Economics and Finance, Society for AEF, vol. 14(3), pages 785-829, December.
- Sanjaya Lall (QEH), . "Reinventing Industrial Strategy: The Role of Government Policy in Building Industrial Competitiveness," QEH Working Papers qehwps111, Queen Elizabeth House, University of Oxford.
- Mitsuyo Ando & Fukunari Kimura, 2005.
"The Formation of International Production and Distribution Networks in East Asia,"
in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 177-216
National Bureau of Economic Research, Inc.
- Mitsuyo Ando & Fukinari Kimura, 2003. "The Formation of International Production and Distribution Networks in East Asia," NBER Working Papers 10167, National Bureau of Economic Research, Inc.
- Venables, Anthony J., 1999. "Regional integration agreements - a force for convergence or divergence?," Policy Research Working Paper Series 2260, The World Bank.
- Przemyslaw Kowalski & Ben Shepherd, 2006. "South-South Trade In Goods," OECD Trade Policy Papers 40, OECD Publishing.
- Kasahara, Shigehisa, 2004.
"The Flying Geese Paradigm: A critical study of its application to East Asian regional development,"
21881, University Library of Munich, Germany.
- Shigehisa Kasahara, 2004. "The Flying Geese Paradigm: A Critical Study Of Its Application To East Asian Regional Development," UNCTAD Discussion Papers 169, United Nations Conference on Trade and Development.
- Sanjaya Lall and Manuel Albaladejo (QEH), .
"China’s Competitive Performance: A Threat To East Asian Manufactured Exports?,"
QEH Working Papers
qehwps110, Queen Elizabeth House, University of Oxford.
- Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
- Greenaway, David & Milner, Chris R, 1990. "South-South Trade: Theory, Evidence, Policy," World Bank Research Observer, World Bank Group, vol. 5(1), pages 47-68, January.
- Shafaeddin, Mehdi & Pizarro, Juan, 2007. "From Export Promotion To Import Substitution; Comparative Experience of China and Mexico," MPRA Paper 6650, University Library of Munich, Germany, revised Oct 2007.
- Natalia T. Tamirisa & Arvind Subramanian, 2001. "Africa's Trade Revisted," IMF Working Papers 01/33, International Monetary Fund.
- Shafaeddin, Mehdi, 2006. "Is The Industrial Policy Relevant In The 21st Century?," MPRA Paper 6643, University Library of Munich, Germany.
- Yilmaz Akyuz, 2008. "Managing Financial Instability in Emerging Markets: A Keynesian Perspective," Working Papers 2008/4, Turkish Economic Association.
- Shafaeddin, S. M., 2004. "Is China's accession to WTO threatening exports of developing countries?," China Economic Review, Elsevier, vol. 15(2), pages 109-144, January.
- Jane T. Haltmaier & Shaghil Ahmed & Brahima Coulibaly & Ross Knippenberg & Sylvain Leduc & Mario Marazzi & Beth Anne Wilson, 2007. "The role of China in Asia: engine, conduit, or steamroller?," International Finance Discussion Papers 904, Board of Governors of the Federal Reserve System (U.S.).
- Moen, J., 1998. "Trade and Development: Is South-South Co-operation a Feasible Strategy?," Papers 21/98, Norwegian School of Economics and Business Administration-.
- Shafaeddin, Mehdi, 2009. "The Impact of the Global Economic Crisis on Industrialization of Least Developed Countries," MPRA Paper 18788, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.