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South-South Trade: Theory, Evidence, Policy

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  • Greenaway, David
  • Milner, Chris R

Abstract

Recently a number of commentators have argued that trade policy in developing countries should be deployed discriminatorily to encourage the expansion of trade among southern countries. Such a strategy is seen as being central in the framing of a new international economic order. This article evaluates the arguments in favor of a relative expansion of South-South trade and reviews the experience of developing countries with discriminatory regional trading arrangements. It contends that the case for specific policies to promote South-South trade is not convincing and that experience with discriminatory arrangements is not encouraging. The expansion of South-South trade can be expected to continue in the contextof multilateral trade expansion, and the potential gains are likely to be greater if the process is allowed to evolve freely in a multilateral setting. Copyright 1990 by Oxford University Press.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:wbrobs:v:5:y:1990:i:1:p:47-68
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    Cited by:

    1. Shafaeddin, Mehdi, 2008. "South-South Regionalism And Trade Cooperation In The Asia-Pacific Region," MPRA Paper 10886, University Library of Munich, Germany.
    2. Laurent Didier, 2017. "South-South Trade and Geographical Diversification of Intra-SSA Trade: Evidence from BRICs," African Development Review, African Development Bank, vol. 29(2), pages 139-154, June.
    3. Amighini, Alessia & Sanfilippo, Marco, 2014. "Impact of South–South FDI and Trade on the Export Upgrading of African Economies," World Development, Elsevier, vol. 64(C), pages 1-17.
    4. Souleymane Coulibaly & Lionel Fontagné, 2006. "South--South Trade: Geography Matters," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 313-341, June.
    5. Njinkeu, Dominique & S. Wilson, John & Powo Fosso, Bruno, 2008. "Expanding Trade within Africa: The Impact of Trade Facilitation," Policy Research Working Paper Series 4790, The World Bank.
    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. Damares Lopes Afonso & Fernando Salgueiro Perobelli & Suzana Quinet de Andrade Bastos, 2022. "South–South trade: An analysis of trade integration in the G‐77," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(7), pages 1430-1452, October.
    8. Shafaeddin, Mehdi, 2010. "The rationale for South-South trade; An Alternative Approach," MPRA Paper 26354, University Library of Munich, Germany.
    9. Foroutan, Faezeh & Pritchett, Lant, 1993. "Intra-sub-Saharan African Trade: Is It Too Little?," Journal of African Economies, Centre for the Study of African Economies, vol. 2(1), pages 74-105, May.
    10. Fu, Xiaolan & Hou, Jun & Liu, Xiaohui, 2018. "Unpacking the Relationship between Outward Direct Investment and Innovation Performance: Evidence from Chinese firms," World Development, Elsevier, vol. 102(C), pages 111-123.
    11. Lucía Gómez & Päivi Oinas & Ronald Sean Wall, 2022. "Undercurrents in the world economy: Evolving global investment flows in the South," The World Economy, Wiley Blackwell, vol. 45(6), pages 1830-1855, June.
    12. Erzan, Refik, 1989. "Would general trade liberalization in developing countries expand South-South trade?," Policy Research Working Paper Series 319, The World Bank.
    13. Raihan, Selim, 2014. "South-South Trade: A Quantitative Assessment," MPRA Paper 57776, University Library of Munich, Germany.
    14. Jun Hou & Xiaolan Fu & Pierre Mohnen, 2022. "The Impact of China–Africa Trade on the Productivity of African Firms: Evidence from Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 869-896, April.

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