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South-South Trade: The Potential for Mauritius

Author

Listed:
  • Ragoobur, Verena Tandrayen

    (University of Mauritius, Mauritius)

  • Tengur, Neha Devi

    (University of Mauritius, Mauritius)

  • Seewooruttun, Bhooteshta

    (University of Mauritius, Mauritius)

Abstract

The objective of the paper is to investigate into the benefits of South-South for a small country like Mauritius in terms of improved trade. Using, UN Comtrade data for the period 1990 to 2018, the study first analyses Mauritius trade patterns with developing and developed markets. Second, the paper probes into South-South trade across 46 countries over the last 29 years and applies the gravity model of trade, using the Poisson Pseudo Maximum-Likelihood Estimator. There is evidence that South-South trade is beneficial to Mauritius, hence the need for greater diversification of its markets away from the traditional European and US markets. The study further reveals that the small island economy must take advantage of growing consumer demand from developing regions, like Africa, China and India. Mauritius being part of different regional trading blocs helps in improving its trade performance.

Suggested Citation

  • Ragoobur, Verena Tandrayen & Tengur, Neha Devi & Seewooruttun, Bhooteshta, 2021. "South-South Trade: The Potential for Mauritius," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(3), pages 45-65, September.
    • Handle: RePEc:ris:jecdev:0029
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    References listed on IDEAS

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    More about this item

    Keywords

    South-South Trade; Developing Countries; Gravity Model of Trade;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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