Economic Cooperation Organization: Ex-post Impact and Potentials on Intra-group Trade in Non-Oil Industries Using Gravity Model

Please enable javascript in your browser.

Mesgari, Iman | 2011

354 Viewed

Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 41226 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Abedini, Javad
Abstract:
International trade arrangements have been considerably developed in recent decadees. Especially, one can note the role of these factors in economic development and improvement of life standards in member countries. In the meantime, Economic Cooperation Organization (ECO) was established in 1985, by Iran, Pakistan and Turkey and then extended by seven other countries: Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. Improving economic development and intra-group trade of member countries is one of the main objectives for the group. The purpose of this research is to estimate the ex-post effects of ECO on the intra-group trade of member countries. Moreover, using a trade gravity model, we estimate the bilateral export potentials of the members in non-oil industries. Results show that ECO has failed to have a significant effect on increasing intra-group trade between member countries. In addition, the estimation of bilateral export potentials demonstrates that smaller countries of the region have adjust their trade model with regional restrictions while bigger countries, proceed an over-regional model
Keywords:
Trade ; Gravity Model ; Economic Cooperation Organization (ECO) ; Intragroup-Trade ; Export Potentials

No TOC