Monday, March 18, 2013

South-South Trade

The Human Development Report (see here p. 46), which was the topic of a recent post, has a great graph on the huge expansion of South-South trade, when compared to North-South and North-North trade, in the last decade.
As one can see, the share of North-South trade in total world trade has expanded at a relatively slow pace, while the share of South-South trade has exploded. The obvious counterpart is the collapse of North-North trade.

I had a teacher that used to say that if someone asked you a question about globalization, and you didn't know the answer, just say China, and you'll be right a third of the times. So let's say China explains what is going on in South-South trade. [China entered the World Trade Organization (WTO) in 2001].

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