Introduction

Abstract

This study deals with regional co-operation among developing countries and its potential benefits. By regional co-operation is meant any form of concerted action by the countries of a region aimed at a fuller utilization of their growth potential. Such concerted action may consist of various kinds of economic policy measures regarding production, investment and foreign trade. In this sense, regional co-operation is to be regarded as a facet of the participating countries’ overall development strategy. Unlike other studies in this field, dealing with integration among developing countries and focussing attention on the planning of such integration (see, e.g., Mennes 1972), the present study concentrates on the effect of integration and co-ordination policies on the structure of intra- and extra-regional trade.