Shafaeddin, Mehdi (2008): SOUTH-SOUTH REGIONALISM AND TRADE COOPERATION IN THE ASIA-PACIFIC REGION. Published in:
Download (700kB) | Preview
This study of regional South-South (S-S) trade and cooperation in East, South and South-East Asian countries (ESSEA) aims to provide an economic rationale for S-S trade; shed some light on the extent and pattern of S-S trade in the ESSEA region; examine the dynamic forces behind the expansion of such trade, and its shortcomings and vulnerabilities; propose policies for enhancing and strengthening regional cooperation; and identify areas for further research.
The main conclusion of the study is that, while the rapid expansion of trade among ESSEA countries has been mainly the result of industrialization and industrial collaboration in the form of production sharing, it has not been driven through the operation of market forces alone. South-South trade can also be used as a policy-driven vehicle for industrialization in lower-income countries, and is linked to the principle of dynamic comparative advantage. The resultant expansion of supply capabilities and diversification of the structure of production and trade, in turn, potentially leads to further expansion of S-S trade and to the geographical diversification of trade for the countries involved, with a positive impact on their bargaining power. However, enhancing S-S trade requires proactive policy measures for cooperation that go beyond tariff reduction and trade agreements.
The paper begins by providing a rationale for S-S trade as a vehicle for promoting industrialization and development. It goes on to show that regional trade has expanded rapidly in ESSEA mainly through intra-industry trade in the form of production sharing in electrical and electronic products. The region has become not only the most dynamic area for S-S trade, but also a major force in international trade in general. Nevertheless, intraregional trade among ESSEA countries has led to three main developments that these countries need to consider collectively and address through joint policy initiatives in order to further promote industrialization and development.
|Item Type:||MPRA Paper|
|Original Title:||SOUTH-SOUTH REGIONALISM AND TRADE COOPERATION IN THE ASIA-PACIFIC REGION|
|Keywords:||Trade, Trade policy, industrial policy, regionalism, South-south trade, China, Asia-Pacific|
|Subjects:||N - Economic History > N8 - Micro-Business History > N85 - Asia including Middle East
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy
O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General
D - Microeconomics > D2 - Production and Organizations > D20 - General
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy
F - International Economics > F0 - General > F00 - General
F - International Economics > F1 - Trade > F15 - Economic Integration
N - Economic History > N6 - Manufacturing and Construction > N65 - Asia including Middle East
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade
F - International Economics > F1 - Trade > F10 - General
L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L70 - General
|Depositing User:||Mehdi Shafaeddin|
|Date Deposited:||06. Oct 2008 00:13|
|Last Modified:||23. Mar 2015 09:46|
Agatiello, O.R.(2007), “Is South-south Trade the Answer to Bringing Poor into the Export Process”, a paper presented to “Expert Meeting on Participation of Developing Countries in New and Dynamic Sectors of World Trade: the South- South Dimension”16–17 October 2007, UNCTAD, Geneva.
Akamatsu, K. (1961), “A theory of Unbalance Growth in the World Economy”, Welwirtschaftliches Archiv-Review of world Economics, 86:3-25.
Akyuz, Y. (2008), “ Managing Financial Instability in Emerging Markets: A Keynesian Perspective”, METU Studies in Development, forthcoming.
Amsden, A. H. (1989), Asia's Next Giant, South Korea and Late Industrialization (New York, Oxford University Press).
Amsden, A. H. (2001), The Rise of “the Rest”, Challenges to the West from Late Industrializing Economies (Oxford, Oxford University Press).
Ando, M. and Kimura, F. (2003), The Formation of International Production and Distribution Network in East Asia, NEBER Working Paper, no. 10167 ( National Bureau of economic Research, Cambridge, USA).
Arndt, W.A, (2002), “Production Sharing and Regional integration”, Claremont College Working Papers, available at: http://owe.clarmont/mckonna.edu, and http://ideas.repec.org.
Baier, S.Bergstrand, J.H. and Vidal E. (2007), “ Free trade Agreements in the Americas: Are the trade Effects Larger than Anticipated” , the World Economy: 1347-1377.
Baldwin, R.(2006),“Managing the Noodle Bowl: the Fragility of East Asian Regionalism”, CEPR, Discussion Paper, no. 5561available at: www.cepr.org/pubs/dps/DP5561.asp.asp.
Baldwin, R, Evenett, S. and Low, P. (2007), “Beyond Tariffs: Multilaterising Deeper RTA Commitments”, a paper presented at the Conference on Multilateralizing Regionalism, sponsored and organized by WTO-HEI co-organized by the Centre for Economic Policy Research (CEPR), 10-10 September 2007, WTO, Geneva.
Bhagwati, J. (1993), “Regionalism and Multilateralism” in De Melo and Panagariya (1993), Chap. 2.
Cernat, L.(2003), “Assessing South-South Regional Integration: Some Issues, Many Metrics”,, UNCTAD, Policy Issues in International trade and Commodities, Study Series, No. 21( Geneva, UNCTAD).
Cernat, L. and Laird, S. (2003), “North, South, East, West: What’s best? Modern RTAs and their Implications for the Stability of Trade Policy”, CREDIT Research Paper,no.03/11,CREDIT, University of Nottingham.
Cline, R. W. (1983), “Trade Policy in the 1980s”, Institute for International Economics (Washington, D.C.).
Corden, W. M.(1993) “Round Table Discussion” in De Melo and Panagariya (1993):457-460.
DAFT (Department of Foreign Affairs and Trade)(2004), “South-South Trade, Winning from Liberalization” (Australian Government).
De Melo , J. and Panagariya, A. (1993); New Dimensions in Regional Integration (Cambridge, Cambridge University Press for Centre for Economic Research-CEPR).
ECLA (1950), The Economic Development of Latin America and its Principal Problems (New York, UN, ECLA).
Epstein, G., Grabel, I and Jomo, K. S. (2003), “ Capital Management Technique in Developing countries: An Assessment of Experience from the 1990s and Lessons for the Future”, a paper presented to the XVIth Technical Group Meeting of G-24, Feb.13-14, available at www.g24.org
Fan , P. and Watanabe, C.(2006), “Promoting Industrial Development through Technology Policy: Lessons from Japan and China”, Technology in Society, 28: .303-20
Gaulier, G., Lemoine,F. and Unal-Kesenci, D.(2005), “China’s Integration in East Asia: Production Sharing, FDI and High-Tech Trade” ( CEPII, Paper No.2005-09).
Gallagher, K.P & Zarsky, L. (2007), The Enclave Economy: Forign Investment and Sustainable Development In Mexico’s Silicon Valley (USA, MIT Press).
Gallagher, K., Hong, S., Pizarro, J, and Shafaeddin, M.( 2008), “Neo-Development vs. Neo-Liberalism: Industrial Policy and Industrial Development in china and Mexico”, forthcoming.
Greenaway, D. and Milner C. (1990), “South-South Trade, Theory, Evidence and Policy”, The world Bank Research Observer, 5, 1:47-68.
HKMDS (Hong Kong Monthly digest of Statistics) (June 2007) (Hong Kong, Census and Statistical Department)
Halmaier, J.T., Ahmad, S. Coulibaly, R.Knippenberg, R., Leduc, S.,Marazzi, M. and Wilson, B. A. (2007), “The role of China in Asia Engine, Conduit, or Steamroller”(£Washington, Federal reserve System).
Hirschman, A. O. (1958), The Strategy of Economic Development (New Haven, Yale University Press).
Hirschman, A.O. (1968), “National Power and the Structure of Foreign Trade” (Berkeley, Univ. of California Press). Huang Y. (2002), Selling China: Foreign Direct Investment during the Reform Era (Cambridge University Press, New york).
Humphrey J. and Schmitz, H.(2006), “The Implications of China’s Growth for Other Asian Countriey” (Institute of Development Studies, University of Sussex).
Hufbauer, G.C. and Schott, J.J.(2007), “ Multilateralizing Regionalism; Fitting Asia-Pacific Agreements into the WTO”, a paper presented at the Conference on Multilateralizing Regionalism, sponsored and organized by WTO-HEI co-organized by the Centre for Economic Policy Research (CEPR), 10-10 September 2007, WTO, Geneva.
Isoga, T. Morishita, H. and Ruffer, R.(2002), “ Analysis of Intra-and Inter-regional Trade in East Asia: Comparative Advantage Structures and dynamic Interdependency in Trade flows”, Working Paper no. 02-E-1, (Tokyo, Bank of Japan).
Isoga,T. and Shibanuma,S.(2000), “ East Asia’s Intra-and Inter-Regional Economic Relations: Data Analysis on Trade, Direct Investment and Currency Transactions”, Working Paper no. 00-E-4, (Tokyo, Bank of Japan)
Kamada, K. and Takagawa, I.(2005), “Policy Coordination in East Asis and Across the Pacific”, Working Paper no. 05-E-4, (Tokyo, Bank of Japan).
Kasahara, S. (2004), “the Flying Geese Paradigm: A Critical Study of its Application to East Asian Regional Development”, UNCTAD, Discussion Paper, No. 169.
Kawai, M. and Wignaraja, G(2007), “ ASEAN+3 or ASEAN+6: Which Way forward? a paper presented at the Conference on Multlateralizing Regionalism, sponsored and organized by WTO-HEI co-organized by the Centre for Economic Policy Research(CEPR9, 10-10 September 2007, WTO, Geneva.
Kowaski, P. and Shepherd, B. (2006), “South-South Trade in Goods”, OECD Trade Policy Working Papers, No. 40,(Paris, OECD).
Koirala, J.R.(2007), Presentation to the Exert Meeting on the Participation of Developing Countries in New and Dynamic Sectors of World Trade: the South-South Dimension, 16-17 October 2007 (Geneva, UNCTAD).
Kozo, K. Sazanami, Y. and Yu Ching W. (2006?), “Intra-regional Trade in Asia: Dynamics of Product Sharing”, Yokohama University (Japan, Yokohama National University).
Lall, S. and Albaladejo, M. (2004),” China’s Competitive Performance: A Threat to Easter Asian Manufactured Exports?; World Development, 32,9:1441-66.
Lall, S. (2004), “Reinventing Industrial Strategy: The role of Government Policy in Building Industrial competititveness”, G-24, discussion Paper, No. 28.
List, F. (1856), The National System of Political Economy, translated by Matile, G. A. (Philadelphia, J. B. Lippincott & Co.).
Ng, F. and Yeats, A.(2003), “Major Trade Trends in East Asia, What are their Implications for Regional Cooperation and Growth”, World Bank Policy Research Paper, Working paper Series, No. 3084.
Malhotra, K. (2006), “National Trade and development Strategies:Suggested Policy Direction”, Background paper prepared for the 2006 UNDP, Human Development Report: Trade on Human Terms: transforming Trade for Human Development in Asia and the Pacific”, 2006.
Moen, J.(1998), “Trade And Development: Is South-South Cooperation A feasible Strategy” (Norwegian School of Economics and Business Administration, paper series no. 21).
Myrdal, G. (1971), Asian Drama, An Inquiry into the Poverty of Nations (London, Penguin Books).
Myint, H, (1958), “The Classical Theory of International Trade and Underdeveloped Countries”, Economic Journal, 68, reprinted in Livingstone (1971).
OECD (2006), South_ south Services Trade, OECD Trade Policy Working Paper, No. 39 (TD/TC (2006)7/ Final.
Oman, C.(1994), Globalization and Regionalization: The Challenge of Developing Countries (Paris, OECD).
Otsubo, S. (1998), New Regionalism and South-South Trade : Could it be an entry point for the South toward global integration? APEC Discussion Paper, No.18.
Puri, l. (2007), “Going beyond the Doha negotiations: promoting Sout-South Trade and Role of GSTP”, A statement made in new Delhi, meeting on 9 August , available at WWW.UNCTAD.org
Prebisch, R.(1984), “Five Stage in my Thinking on Development”, in Mier, J. M. and Seers, D.(1984), Pioneers in Development (Oxford, Oxfors University Press).
Rodrik, D. (1998), “Who need Capital-Account Convertibility?, in “should the IMF Pursue Capital-Account Convertibility”, Princeton Essays in International Finance, No. 207: 55-65.
Rodrik, D. (2006), “What’s so Special about China’s exports? CEPR Discussion Paper, No. 5483 (London: Centre for economic Policy Research).
Rodrik, D. (2002), “After Neo-liberalism,” talk to the conference of Coalition for New Rules for global Finance, May 22-23,2002, Washington D.C.
Rollo, J.(2007), “The Challenge of Negotiating RTAs for Developing Cuntries: what could the WTO do to help?”, a paper presented at the Conference on Multilateralizing Regionalism, sponsored and organized by WTO-HEI co-organized by the Centre for Economic Policy Research(CEPR9, 10-10 September 2007, WTO, Geneva.
Sarkar, P. and Singer, H. W. (1991), “Manufactured Exports of Developing Countries and Their Terms of Trades Since 1965”, World Development, 19, 4, 333–40. South Centre (1996), Enhancing South-South Trade (Geneva, South Centre).
Shafaeddin, M. (1984), Import capacity as a Bargaining Tool of Developing Countries, Trade and Development, an UNCTAD Review, No. 5, 53–79.
Shafaeddin, M. (2004),”Is china’s Accession to WTO Threatening Exports of Developing Countries”, China Economic review, 15,2:109-144.
Shafaeddin, M. (1997), "Review of New Dimensions in Regional Integration", edited by Jaime de Melo and Arvind Panagariya, Cambridge University Press, 1993, Journal of Modern African Studies1997.
Shafaeddin,M.(2005.a), Trade Policy at the Crossroads; the Recent Experience of Developing Countries (Basingstoke and New York).
Shafaeddin, M. (2005.a), “Towards an Alternative Perspective on Trade and Industrial Policies”, Development and Change, 36,6:1143-62).
Shafaeddin, M. (2006) Is industrial policy relevant in the 21st century?, A paper presented as a key note speech to the plenary of the International Conference on “New Approaches to Design of Development Policies”, 20-21 March 2006, Beirut, organized by the Arab Planning Institute and published by the same Institute as a monograph. Shafaeddin, M. and Pizarro, J. (2007), “From Export Promotion to Import Substitution; Comparative Experience of China and Mexico, forthcoming, available at : www.networkieas.org.
South Centre (1996), Enhancing South-South Trade (Geneva, South Centre).
Subramanian, A. and Tamirisa, N.T.(2001), “Africa’s Trade Revisited, IMF Working Paper01/33, Washington, International Monetary Fund).
Venables, J.A. (1999),Regional Integration Agreements: A force for Convergence or Divergence?, World Bank Policy Research Working Paper, No. 2260, (Washington d.C., World Bank).
Viner, J.(1950), The Custom Union Issue, (Washington DC, Carnegie Endowment for International Peace).
UNDP (2003), Making Global Trade Work for People, London and Sterling, Virginia, Earthscan.
UNDP (2005.a), The Great Maze, Regional and Bilateral Free Trade Agreements in Asia, Trends, Characteristics, and Implications for Human Development, (Colombo, UNDP Regional Centre).
UNDP (2005.b), People, Trade and Development, Learning from Asia-Pacific Colombo, UNDP regional centre.
UNDP (2007), Export Diversification for human Development in the Post-ATC Era, Colombo, UNDP regional centre in Colombo.
UNCTAD (1986), South-South Trade and Finance, Strengthening the Weakest Link,(New York , United Nations).
UNCTAD (2007.a), Trade and Development Report, 2007,(Geneva, United Nations).
UNCTAD (2007.b), World Investment Report, 2007 (Geneva, United Nations).
UNCTAD (2007.c), Handbook of Statistics, 2006-07( Geneva, United Nations).
UNCTA (2007.d), Trade in Service and Development Implications, doc. TD/B/COM.1/85.
UNCTAD (2007.e), “Progress Report on the Implementation of the Agreed Conclusions and Recommendations of the Commission since UNCTAD XI, Dcoc. TD7B/COM.1/91.
Wishwanath, T.S.(2007), “South-South cooperation: A Business Perspective on India’s Engagement”, Presentation to the Exert Meeting on the Participation of Developing Countries in New and Dynamic Sectors of World Trade: the South-South Dimension, 16-17 October 2007 (Geneva, UNCTAD).
World Bank (2000), Trade Blocs (New York, Oxford University Press)
Zebregs, H. (2004:14) “ Interaregional Trade in Emerging Asia”, IMF, Discussion Paper, No. PDP/04/1( IMF, Washington)
Young, A. R. (1928), “Increasing Return and Economic Progress”, The Economic Journal, December.