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The Role of China in Regional South-South Trade in Asia-Pacific: Prospects for industrialization of the low-income countries

Author

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  • Shafaeddin, Mehdi

Abstract

The author provides an alternative for the rationale for South-South trade as a vehicle for industrialization and development of developing countries in Asia-Pacific region as the literature on this issue is not satisfactory. Further, refuting the “de-coupling” thesis—that is, the East Asian countries are decoupled from the business cycle in developed countries—he analyses the merits and shortcomings of China’s regional trade with its partners in the region. Moreover, considering the growing weight of China in the global production network and international trade he proposes policies for the future of industrialization and development of the partner countries for strengthening the role of China as a growth “pole”. He suggest, inter alia, the need for industrial collaboration among the low-income countries, which benefit less than others from the dynamics of the Chinese economy as a “hub” complemented by adjustment assistance by China and NIEs. He also proposes technological cooperation among other main partner countries which are involved in production sharing in a limited number of electric and electronic products for exportation to the third markets in developed countries. The aim is to upgrade their industrial structure, and reduce their vulnerability to changes in the economic strategy of China and the business cycles in developed countries.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:26358
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    References listed on IDEAS

    as
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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.

    More about this item

    Keywords

    East Asia; regionalism; industrialization; production sharing;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F15 - International Economics - - Trade - - - Economic Integration
    • F1 - International Economics - - Trade
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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