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This paper uses a combination of Ethier (1982) and Melitz’s (2003) models toshow that liberalizing trade among developing countries, so-called South-Southtrade, could contribute to improve the access to international markets ofdeveloping countries’ would-be exporters. Lower trade barriers amongdeveloping countries has the effect of lowering the price of intermediate inputsand eventually allows exporters in those countries to serve international markets.We also compare unilateral and multilateral South-South trade liberalization andfind that the latter unambiguously reduces the price of intermediates in allparticipating countries, whereas the former has ambiguous effects.JEL classification: F12, F13, F15