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Trade and Development: Is South-South Co-operation a Feasible Strategy?



The first part of this article gives a brief overview of the main problems facing the developing countries in the present international trading system, and reviews the debate on import substitution vs. export promotion. Towards this background the main part of the article discusses South-South co-operation as an alternative or complementary development strategy. Global South-South co-operation and collective self-reliance is largely dismissed as an ideologically motivated policy recommendation, overlooking the large number of conflicting interests among developing countries. The areas of joint interest are greater at regional or subregional levels, and a number of South-South integration schemes have been signed during the last decade. There are several potential gains associated with these integration processes, but substantial economic and political barriers have to be overcome. When geographically and politically possible, North-South integration schemes may have larger advantages than pure South-South arrangements.

Suggested Citation

  • Moen, J., 1998. "Trade and Development: Is South-South Co-operation a Feasible Strategy?," Papers 21/98, Norwegian School of Economics and Business Administration-.
  • Handle: RePEc:fth:norgee:21/98

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    References listed on IDEAS

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    2. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 701-729, June.
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    7. Kiminiori Matsuyama, 1995. "Economic Development as Coordination Problems," Discussion Papers 1123, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
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    Cited by:

    1. Shafaeddin, Mehdi, 2010. "The rationale for South-South trade; An Alternative Approach," MPRA Paper 26354, University Library of Munich, Germany.
    2. Shafaeddin, Mehdi, 2008. "South-South Regionalism And Trade Cooperation In The Asia-Pacific Region," MPRA Paper 10886, University Library of Munich, Germany.
    3. 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.

    More about this item



    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General


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