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South-South Trade: Theory, Evidence, Policy

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  • 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.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:wbrobs:v:5:y:1990:i:1:p:47-68
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    1. repec:bla:afrdev:v:29:y:2017:i:2:p:139-154 is not listed on IDEAS
    2. repec:eee:wdevel:v:102:y:2018:i:c:p:111-123 is not listed on IDEAS
    3. Erzan, Refik, 1989. "Would general trade liberalization in developing countries expand South-South trade?," Policy Research Working Paper Series 319, The World Bank.
    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. Souleymane Coulibaly & Lionel Fontagné, 2006. "South--South Trade: Geography Matters," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 313-341, June.
    6. Njinkeu, Dominique & S. Wilson, John & Powo Fosso, Bruno, 2008. "Expanding Trade within Africa: The Impact of Trade Facilitation," Policy Research Working Paper Series 4790, The World Bank.
    7. Shafaeddin, Mehdi, 2010. "The rationale for South-South trade; An Alternative Approach," MPRA Paper 26354, University Library of Munich, Germany.
    8. Raihan, Selim, 2014. "South-South Trade: A Quantitative Assessment," MPRA Paper 57776, University Library of Munich, Germany.
    9. 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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