Regional Economic Integration In Developing Countries: South-South Or South-North?

Since end of 1990s the world has been experiencing a new wave of Regional Integration Agreement (RIAs). Kinds of Regional Integration Agreements (main FTAs) largely increased and has been one of most effective ways to enhance regional economic cooperation and to put forward national economic growth. For those developing countries there are two choices: with other developing countries for a South-South RIA or with developed countries for a South-North RIA. A thoroughly compative research on the welfare of these two paths is very meaningful for developing countries to RIA practice.With statistical analysis method and comparative analysis method, this paper systematically studies the welfare of South-South RIA and South-North RIA, and finally draws some main conclusions as follows:First, South-South RIAs are more unlikely to improve the welfare of whole trade blocs. For those richer and large member countries, South-South RIA may bring some welfare improvement, which will on the expense of the loss of poorer and smaller member countries. But those non-economic benefits South-South RIA brings to members also can not be ignored.Second, South-North RIAs are more likely bring welfare to whole trade bloc and the developing members, because of its big trade creation effect and minor trade diversion effect. But these economic benefits may have developing members lose more in national politics, legal system and other social areas.Third, for developing countries, South-South RIA and South-North RIA should not simply be good or bad, since each model has its own benefits and loss in different areas. It depends on the specific environment and economic conditions of a developing country to make the choice. Actually, the best way for a developing country to achieve more through RIAs is to carry out a RIA and keep open ( By Unlateral Trade Liberalization or low down common external tariff ) to the rest of the world.This paper comprises eight chapters.Chapter 1 introduces purpose of selecting this topic and methodology of research.Chapter 2 reviews relative literatures on the study focused on welfare of Regional Economic Integration.Chapter 3 systematically analyses the welfare effect of South-South RIAs, including trade creation effect, trade diversion effect, dynamic effect, and other non-economic effect.Chapter 4 systematically analyses the welfare effect of South-Nouth RIAs by the same way to South-South RIAs as in Chapter 3.Chapter 5 Make a comparative analysis to South-South RIAs and South-North RIAs and draw the final conclusion.Chapter 6 analyzes the status of China's participation in regional integration.Chapter 7 Advances corresponding suggestions on the basis of analyzing the characters and existing problem of China's participation in regional integration.Chapter 8 concludes with an overall summary.