David and Goliath? Small Developing Countries, Large Emerging Markets, and South-South Preferential Trade Agreements

Dados Bibliográficos

ID6273139
AutoresDaniela Donno (0000-0002-5074-1814, University of Cyprus), Nita Rudra (0000-0003-2336-0562, Georgetown University)
Ano2019
Volume63
Fascículo3
Páginas574-588
Data de publicação2019-09-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoInternational Studies Quarterly (JOURNAL)
Identificadores do periódicoISSN: 0020-8833 • E-ISSN: 1468-2478
EditoraOxford University Press (PUBLISHER • GB)
DOI10.1093/isq/sqz041
OpenAlexW2959869329
IdiomaEN
Citações recebidas6
Referências citadas90

Has the rise of large emerging economies influenced the foreign economic policies of smaller nations? Many of the BRICS' (Brazil, Russia, India, China, South Africa) dominance in export markets for low-skilled goods pose a particular challenge for “surplus-labor” countries characterized by large populations of unskilled and underemployed labor. We theorize the incentives of firms and governments in surplus-labor countries to form South-South preferential trade agreements (SSPTAs) as a means of diversifying and expanding trade relationships in the face of this challenge. Of all the BRICS, our findings show that China poses the greatest challenge; the countries forming the most South-South agreements are those whose exports have been most displaced by China. We verify this pattern using both systemic and country-specific measures of the China “shock.” Imports from China, in contrast, have no significant effect on SSPTA formation. Our account, which helps resolve the dual puzzle of declining trade with rich countries and the proliferation of SSPTAs in recent decades, underlines the implications of China's rise on the developing world

China · Developing country · Development economics · Dominance (genetics · Economic growth · Economics · Emerging markets · Incentive · International economics · International trade · Market economy · Political science · Shock (circulatory · Global trade and economics · International Business and FDI · International Development and Aid