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Review of Radical Political Economics
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South-South Trade in Manufactures: Current Performance and Obstacles for Growth

Omar S. Dahi

School of Social Science, Hampshire College, Amherst, MA 01002, odahi{at}hampshire.edu

Firat Demir

Department of Economics, University of Oklahoma, Norman, OK 73019, fdemir{at}ou.edu

The last two decades have witnessed resurgence in South-South trade, investment, and regional integration. This article examines trade performance in total and technology-and-skill-intensive manufactures for a sample of twenty-eight developing countries with both developed (South-North) and other developing (South-South) countries. Previous studies and our sample data show that South-South trade in manufactures is characterized by higher capital and skill-intensive factor content relative to South-North trade, with major implications for development in the South, including the possibility of dynamic gains through learning by exporting, technological externalities, allocative efficiencies, and scale economies. The article concludes by discussing obstacles to increasing South-South trade and possibilities for future research on the topic.

Key Words: South-South trade • industrial development

This version was published on September 1, 2008

Review of Radical Political Economics, Vol. 40, No. 3, 266-275 (2008)
DOI: 10.1177/0486613408320007
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