Trade Relations with Socialist Countries

In previous analyses of developing country trade relations, economists have generally focused attention on the exchange between LDCs and the developed market economy countries (DMECs). There are various reasons for this concentration of interest. Firstly, trade with the DMECs is of primary importance as these markets received 73 per cent of developing country exports in 1976 and supplied 68 per cent of imports. In contrast, the centrally planned countries (CPCs) accounted for only 4 per cent of LDC exports and 5 per cent of imports, figures which were well below corresponding ratios for LDC intra-trade. Thus, the fact that existing trade volumes are so small may be a major reason for the relative lack of attention devoted to this exchange.