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The rationale for South-South trade; An Alternative Approach

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  • Shafaeddin, Mehdi

Abstract

Arguing that the theoretical literature on South-South trade is not satisfactory, the author provides an alternative framework and rationale for the South-South trade as a vehicle for industrialization and development of developing countries. He also applies this framework to developing countries in the Asia-Pacific region. In particular, showing that the low-income countries of the region are not benefiting much from the dynamism of the China market for their industrialization, he proposes, inter alia, industrial collaboration among the low-income countries as a necessary condition for benefiting from the potential role of China as a “pole” of industrialization and development of the countries of the region.

Suggested Citation

  • Shafaeddin, Mehdi, 2010. "The rationale for South-South trade; An Alternative Approach," MPRA Paper 26354, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26354
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    References listed on IDEAS

    as
    1. Greenaway, David & Milner, Chris R, 1990. "South-South Trade: Theory, Evidence, Policy," The World Bank Research Observer, World Bank, vol. 5(1), pages 47-68, January.
    2. Scott L. Baier & Jeffrey H. Bergstrand & Erika Vidal, 2007. "Free Trade Agreements In the Americas: Are the Trade Effects Larger than Anticipated?," The World Economy, Wiley Blackwell, vol. 30(9), pages 1347-1377, September.
    3. Kevin P. Gallagher & Mehdi Shafaeddin, 2009. "Policies for Industrial Learning in China and Mexico," Trade Working Papers 22782, East Asian Bureau of Economic Research.
    4. Przemyslaw Kowalski & Ben Shepherd, 2006. "South-South Trade In Goods," OECD Trade Policy Papers 40, OECD Publishing.
    5. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    6. 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.
    7. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
    8. Sanjaya Lall, 2013. "Reinventing Industrial Strategy: The Role Of Government Policy In Building Industrial Competitiveness," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 785-829, November.
    9. Mehdi Shafaeddin & Juan Pizarro, 2010. "The evolution of value added in assembly operations: the case of China and Mexico," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(4), pages 373-397.
    10. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-1255, December.
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    12. Moen, J., 1998. "Trade and Development: Is South-South Co-operation a Feasible Strategy?," Papers 21/98, Norwegian School of Economics and Business Administration-.
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    14. Ms. Natalia T. Tamirisa & Mr. Arvind Subramanian, 2001. "Africa's Trade Revisted," IMF Working Papers 2001/033, International Monetary Fund.
    15. Shafaeddin, Mehdi, 2006. "Is The Industrial Policy Relevant In The 21st Century?," MPRA Paper 6643, University Library of Munich, Germany.
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    More about this item

    Keywords

    International trade; South-South cooperation; industrial collaboration; production sharing; East Asia;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F1 - International Economics - - Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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