Can South-South trade Liberalisation Stimulate North-South Trade?

Details

Serval ID
serval:BIB_51208722283D
Type
Article: article from journal or magazin.
Collection
Publications
Title
Can South-South trade Liberalisation Stimulate North-South Trade?
Journal
Journal of Economic Integration
Author(s)
Fugazza M., Robert-Nicoud F.
ISSN
1225-651X
Publication state
Published
Issued date
06/2006
Peer-reviewed
Oui
Volume
21
Number
2
Pages
234-253
Language
english
Abstract
This paper uses a combination of Ethier (1982) and Melitz's (2003) models to show that liberalizing trade among developing countries, so-called South-South trade, could contribute to improve the access to international markets of developing countries' would-be exporters. Lower trade barriers among developing countries has the effect of lowering the price of intermediate inputs and eventually allows exporters in those countries to serve international markets. We also compare unilateral and multilateral South-South trade liberalization and find that the latter unambiguously reduces the price of intermediates in all participating countries, whereas the former has ambiguous effects.
Keywords
South-South trade, Market access, Input-output linkages, Value chain
Create date
27/10/2016 11:29
Last modification date
20/08/2019 15:06
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