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South-South Trade: An Asian Perspective

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  • Athukorala, Prema-Chandra

    (Australian National University)

Abstract

The purpose of this paper is to inform the contemporary policy debate on promoting trade among developing countries (South–South trade) by analyzing trade patterns of developing Asian economies from a comparative global perspective. The paper begins with a stage-setting historical overview of the policy debate on South–South trade. It then examines trends and patterns of South–South trade in Asian economies, with emphasis on the implications of the growing importance of global production sharing and the rise of the People’s Republic of China, followed by an econometric analysis of the determinants of South–South trade flows within the standard gravity modeling framework. As far as developing Asian countries are concerned, there is no evidence to suggest that growth of their trade with the Southern trading partners has lagged behind what we would expect in terms of the standard determinants of trade potential. The findings also suggest that South–South trade is largely complementary to, rather than competing with, South–North trade.

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Bibliographic Info

Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 265.

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Length: 55 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:ris:adbewp:0265

Note: URL: http://www.adb.org/Documents/Working-Papers/2011/Economics-WP265.pdf
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Related research

Keywords: South-south trade; gravity model; global production; Asia; Peoples Republic of China; Latin America;

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References

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  1. Riedel, James, 1984. "Trade as the Engine of Growth in Developing Countries, Revisited," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 94(373), pages 56-73, March.
  2. Havrylyshyn, Oli & Civan, Engin, 1985. "Intra-industry trade among developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 18(2-3), pages 253-271, August.
  3. Przemyslaw Kowalski & Ben Shepherd, 2006. "South-South Trade In Goods," OECD Trade Policy Papers 40, OECD Publishing.
  4. Kindleberger, C. P., 1976. "A world divided: The less developed countries in the international economy : G.K. Hellemer, ed., (Cambridge University Press, Cambridge, 1976)," Journal of Development Economics, Elsevier, Elsevier, vol. 3(3), pages 299-300, September.
  5. Souleymane Coulibaly & Lionel Fontagné, 2004. "South-South Trade : Geography Matters," Cahiers de la Maison des Sciences Economiques, Université Panthéon-Sorbonne (Paris 1) bla04041, Université Panthéon-Sorbonne (Paris 1).
  6. Lewis, Arthur, 1979. "The Slowing Down of the Engine of Growth," Nobel Prize in Economics documents, Nobel Prize Committee 1979-2, Nobel Prize Committee.
  7. Prema-chandra Athukorala, 2003. "Product Fragmentation and Trade Patterns in East Asia," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2003-21, The Australian National University, Arndt-Corden Department of Economics.
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Citations

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Cited by:
  1. Yilmaz Akyüz, 2012. "The Staggering Rise of the South?," Working Papers, Turkish Economic Association 2012/3, Turkish Economic Association.
  2. Francis Ng, 2014. "Increased Export Performance and Competitiveness of Developing Countries: Mainly a China Story?," EUI-RSCAS Working Papers, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS) p0397, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  3. Bernhardt, Thomas, 2014. "How promising is South-South trade as a contributor to economic development in Asia and South America? Insights from estimating income elasticities of import demand," MPRA Paper 56413, University Library of Munich, Germany.
  4. Prema-chandra Athukorala, 2007. "The Rise of China and East Asian Export Performance: Is the Crowding-out Fear Warranted?," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2007-10, The Australian National University, Arndt-Corden Department of Economics.
  5. Aksoy, M. Ataman & Ng, Francis, 2013. "Demand growth versus market share gains : decomposing world manufacturing import growth," Policy Research Working Paper Series 6375, The World Bank.

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