ABSTRACT
The expansion of trade between less developed countries (LDCs) has been rapid during the last two decades. Neverthelesss, currently less than one-third of total exports of the less developed countries as a group has its destina tion within that group.1 In many LDCs facing protectionism, declining termsof-trade and limited domestic markets, economists and politicians alike argue for more intra-regional trade and economic cooperation agreements between LDCs.2 Sometimes economic cooperation also seems to be seen almost as an end in itself, promoting in some indeterminate sense the interests of the coun tries involved.3
