Studying Iranian Economic Integration with OIC Members Using Gravity Model

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Abstract:

OIC members have much potential in their economic development. Therefore, their economic integration leads to more increment for partners and deal with global system as a unique organization. Consequently, studying the convergence of OIC members and their encountered challenges has especial importance which can assist the policy makers to develop their commercial relationship and consequently employment enhancing and economic situation improvement in future planning. Therefore, in this research the commercial effects of selected OIC members during 2005-2011 were modeled using gravity method. Results showed that from the basic gravity equation, the economy size of other 6 OIC members is the main determinant in the Iranian bilateral trade relationship. Thereby, 1% increase in the economy size of other 6 OIC members, leads to 0.91% increase in the volume of trade inflows between considered OIC members.JEL Classification: F15, F36, O11Received: 1/6/2013                        Approved: 7/29/2013

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Journal title

volume 8  issue None

pages  169- 181

publication date 2013-01

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