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South-South Trade: An Asian Perspective

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  • Prema-chandra Athukorala

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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Suggested Citation

  • Prema-chandra Athukorala, 2011. "South-South Trade: An Asian Perspective," Departmental Working Papers 2011-09, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2011-09
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2011/wp_econ_2011_09.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Sanjeev Vasudevan & M. Suresh Babu, 2021. "Global production sharing and trade effects: an analysis of Eurasian Economic Union," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 633-665, December.
    3. Prema‐chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding‐Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, February.
    4. Yilmaz Akyüz, 2012. "The Staggering Rise of the South?," Working Papers 2012/3, Turkish Economic Association.
    5. Francis Ng, 2014. "Increased Export Performance and Competitiveness of Developing Countries: Mainly a China Story?," EUI-RSCAS Working Papers p0397, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    6. Suresh K G & Neeraj Aswal, 2014. "Determinants of India's Manufactured Exports to South and North: A Gravity Model Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 4(1), pages 144-151.
    7. 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.
    8. Bandara, Yapa M.W.Y. & Sharma, Kishor & Chakrabarty, Debajyoti, 2019. "Trends, patterns and determinants of production sharing in Australian manufacturing," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 1-11.

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    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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