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Harry C. Broadman

of other developing regions. The result, except in South Africa and Nigeria, is small and shallow markets. Such conditions make it costly to trade in Africa. Asia-Africa trade patterns Over the past 15 years, trade flows between Africa and Asia have increased rapidly, the hallmark of the recent growth of South-South trade. Shifting shares . During 1990–95, Africa’s exports to Asia grew by 15 percent and, over the past five years, by 20 percent, with Africa’s export growth to Asia surpassing that to all other regions (see Chart 1 ). Asia is now Africa

Nitya Aasaavari, Fabio Di Vittorio, Ana Lariau, Yuebo Li, Rui Mano, and Mr. Pedro C Rodriguez

support a growing urban population in China ( Casanova et al, 2016 ), the demand for mineral intermediate inputs may decline over time. To sustain the linkages already built with China, LAC countries should diversify and increase the value added of their exports. Policies supporting trade integration and reducing trade costs could also facilitate this transition, as discussed in Section V . B. LAC’s Exports to Asia LAC’s exports to Asia are highly concentrated, in terms of both geographical destination and products. Regarding the former, 53 percent of total