r37. Given the relativery high growth rates of sou th-sou th trade before 1980 andihe resultlng large import coefficlents fron the South. siopls extrapolationguggests that further trade grorrth can support increases 1n the oedian GDp grovrthrate of. about 0.5 per cent or nore in the different developing reglons.correapondlng lncrenental gro(rth fron bigher exports to the North under plausibleassuoptlona is of the sane nagnituale or less. Neither source is sufficlent toovetcoBe the gro{rth rate reductlons suffered by the South in the early lggos, butbal.anced trade amplification can got some iray touard undolng the damage. 138. The policy problems posed by such trade expansion are severe. Regionalarrtngements for trade co-operation have not fared lrell in the developlng rrorrd, 6nal Potential trade lobalances have ariEen between Large and Emall economies(e.9., Bra8ll ln the 1970s largely ran trsde surpluses with Irtin Americanneighbors to finance its petroleuo imports). Sirtce I9g0, 6 further problen oftrade finance has arisen. Flnancial clearing Enong developing countiies haa beenblocked by lack of available foreign exchange in central banks. Itowever. ifrelatively slou grorrth in the lbrth continues, institutional forces tonard grealersouth-south lntegration oay be set in notion. cultural and region'al affinities mayunderri,e continued expansion of trade in oanufactures and services (as in fact they<lid in the tr,o decadea prior to I9g0), and recovery of growth by the morelndustrialized developing countries can provide expanding markets for rawnaterlars. rf codmercial banks pull back frcim tentting io the south for a period ofa decade or tnore, development of locally interrneillated tratte and finance(regionally and/or abetted by a south bink of aone sort) oay be a promising area ofecononic activi ty.A/40/5r9 English Page 57 lilctes y Ina1vitlual country models of the IJINK project, which comprises 25 country npdeli for the developeal market econonies, 9 nodels for centrally Planned econooles, and about 35 models for developing market econonies, linked wlth the projectrg $dr lal tratle model, developetl and maintained at the LINK Centre at the
**Analysis**
The text appears to be discussing the economic relationships between developing countries, particularly in terms of trade and finance. It mentions the growth of south-south trade, the potential for further growth, and the challenges and opportunities that come with it. The text also touches on the need for regional arrangements and institutional forces to facilitate trade and financial cooperation.

**Category**
International trade, Economic development