The rationale for South-South trade; An Alternative Approach

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.