Trade between Asian Developing Countries: Record and Prospects

Abstract

Recent developments along with the dynamics of growth suggest that trade between developing countries must expand if they are to achieve satisfactory rates of economic growth. This is so, even though in a free trade world, there may be no benefits in directing trade one way or another. Left to the market, trade will follow demand along lines of comparative advantage. However, when protection is present, when markets are not alike in marketing infrastructure, tastes differ, and demand is growing at different rates in different parts of the world, policy steps may be necessary to gain the maximum advantage from trade, including those designed to increase trade among specific groups of countries. In this article, emphasis will be on one of these groups, the Asian developing countries…