Overview

The twelve papers in this volume provide information on and analysis of trade flows among developing countries (which are mostly in the Southern Hemisphere). In the early 1980s the worldwide recession brought about a slowing of trade among the South-South countries. Subsequently, given the slower growth of the developed countries, the authors of these papers believe there is hope for economic growth, increased trade, and improved balance of payments in trade among the developing nations. The papers included here are the result of a research project initiated by the United Nations Conference on Trade and Development (UNCTAD). This is a relatively new field, and these papers are a major source of information. They go beyond the confines of neo-classical theory, discussing the dynamic role of trade in the development and industrialization of developing countries. South-South Trade presents a diversity of topics and approaches. On the supply side, the work is on identifying the determinants of the shifting comparative advantage over time of newly industrializing countries (NICs) and their impact on directions of trade. On the demand side, changes in the global patterns of income distribution, especially relating to the capital surplus oil exporting countries supplying the south, are explored. In manufacturing trade, the changes in organization of production and trade, including the corporate strategies of transnational corporations (TNCs), are assessed. Specific papers deal with agricultural and manufactured products and investment-related technological services. This work analyzes South-South trade within the framework of a world undergoing growth and structural change, where developing countries have attempted to diversify both the composition and geographical destination of their imports.

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VIVIANNE VENTURA-DIAS is Associate Professor of International Economic Relations at the University of Brasilia and Technical Advisor to the Brazilian Government on the ongoing multilateral trade GATT negotiations.

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