World economy has become increasingly integrated. There is an underlying assumption that integration into the world economy provides more opportunities for trade. The evidence shows that integration at the regional levels can help developing countries to prepare for the international economic integration. It will be important to outline and analyze past efforts at regional integration (regionalism) to have prospects for future arrangements. This study assessed the impact of Iran membership in Economic Cooperation Organization on agricultural trade by means of generalized gravity model. The econometric method used to isolate and eliminate the regional agreement effects is panel and pooled data techniques. Our results indicated positive and significant intra-trade impact of regionalism on Iranian agricultural trade. We found that, directly and indirectly, ECO have had positive effects on Iranian agricultural trade. Indirectly, the degree of similarity between Iran and the other ECO members in religion, border, ethnic, and language is very high in relation to the other chosen trade partners of Iran. Also a considerable share of the variability in ECO agricultural trade flows referred to uneconomic factors. Therefore, it seems that Iran would be able to expand its agricultural trade by gradually reducing trade barriers in ECO region, using these ECO members' similarities.
Toossi, M., Moghadasi, R., Yazdani, S., & Ahmadian, M. (2011). Regionalism and Iran's Agricultural Trade Promotion in Economic Cooperation Organization (ECO). Agricultural Economics, 4(4), 131-157.
Toossi, M., Moghadasi, R., Yazdani, S., Ahmadian, M. (2011). 'Regionalism and Iran's Agricultural Trade Promotion in Economic Cooperation Organization (ECO)', Agricultural Economics, 4(4), pp. 131-157.
VANCOUVER
Toossi, M., Moghadasi, R., Yazdani, S., Ahmadian, M. Regionalism and Iran's Agricultural Trade Promotion in Economic Cooperation Organization (ECO). Agricultural Economics, 2011; 4(4): 131-157.
)