Exports of developing countries : how direction affects performance - a World Bank symposium

This paper focuses on the directional flow of trade in developing countries. It encompasses a wide variety of viewpoints on South-South trade and a large span of theoretical and empirical information on the nature, causes and effects of trade in manufactured and primary products among developing countries. Discussion focuses on whether trade should theoretically be different in different directions, whether expected differences are observed empirically, how the policies of trading partners influence the direction of their trade, and whether South-South trade offers dynamic comparative advantages for developing countries. A concluding assessment argues that, although there is little demonstrated advantage of South-South trade over South-North trade, developing countries can benefit by adopting policies that encourage trade in all directions.