Potential and prospects for trade and investment among developing countries and transition economies

Background

Recent years (2000-2006) have witnessed a genuine explosion of merchandise trade between developing countries and countries with economies in transition.

Thus, exports from developing countries to the latter increased by more than 424 per cent during that time, from $14 billion to more than $73 billion.^*

During the same period, the growth of imports from countries with economies in transition was also impressive, amounting to 290 per cent, from $21 billion in 2000 to $82 billion in 2006.

In terms of export product structure, the most dynamic exports from developing countries were:

• Animal and animal products (2,263 per cent growth)
• Various vehicles (965 per cent)
• Base metals and products (946 per cent)
• Aircraft, ships and boats (754 per cent)
• Other manufactured articles (519 per cent)

On the other hand, the most dynamic products of developing countries' imports from countries with economies in transition were:

• Fuels (453 per cent growth)
• Vegetable products (311 per cent)
• Ores and minerals (284 per cent)
• Miscellaneous manufactured articles (267 per cent)

Analysis of these trade flows - which, to a large extent, are still being established -suggests that a strong pattern of complementarity is gradually evolving in trade between these two groups of countries.

^* All data is from UNCTAD's South-South Trade Information System (SSTIS).