South-South Trade Deals Boost Bilateral Trade More Than North-South Pacts
Trade agreements increase trade between countries, whether they are rich or poor. South-South agreements boost trade more than North-South ones. The study checked various models to be sure of the results. It found that factors like the number of countries involved affect the trade increase. When four countries sign a North-South deal, trade rises by 53%, but a South-South pact raises it by 107%. The difference is due to multilateral resistance, which affects North-South deals more. So, signing with South countries makes trade grow more.