Trade and cooperation development of the Iran and D8

Document Type : Original

Authors

Department of Foreign Trade, Institute for Trade Studies and Research, Tehran, Iran.

Abstract

Convergence and collaboration among Developing Eight (D8) in economic, investment, and trade dimensions can bring about mutual economic, commercial, and non-economic interests for members, including Iran. The present study aims to use the theoretical framework of "regionalism" and convergences within regional blocs to address the following questions: How has the past performance and future outlook of intra-regional and extra-regional trade within the Group of Developing Eight (D8) been, and what is the current status of Iran among the members? Over the quarter-century of the formation, is the trade of group members within the framework of convergence literature resulting from the creation of trade, or is it a deviation from trade? The study seeks to evaluate the development of cooperation and trade within the D8 group, with a particular focus on Iran. In the methodological dimension, criteria such as "homogeneity of economic indicators", "degree of trade convergence" and a 22-industry-8-country matrix have been employed to identify the priorities for the development of cooperation and trade between Iran and the member countries of the Group of Eight (D8). These criteria are utilized to assess the areas of development for collaboration and trade. The study results indicate that over the period, the income per capita gap and dispersion for some of the poorer member countries have become more convergent, and there has been long-term homogenization of development indicators for the poorer members. Additionally, the study results show that during the period, the increase in the share of intra-regional trade within the organization and Iran has not been aligned with the development of Iran's trade. The development and deepening of intra-regional trade have not only led to the expansion of Iran's trade but have also resulted in trade divergence. The analysis of the results indicates that the lack of regional trade development is due to the underdevelopment and weak trade structure of Iran. Currently, the possibility of developing intra-regional trade and convergence with the organization is weak. However, with the development of the economic structure and the enhancement of relative advantages to Competitive Advantage, the potential for leveraging convergence benefits becomes available. Ultimately, from the study of 22 industries and 8 member countries of the group (a 22-Industry-8-Country Matrix), Turkey and Indonesia exhibit potential, diversity, and a wide range of industrial production in the fields of food, wood, paper, printing and publishing, chemicals, rubber and plastics, non-metallic minerals, fabricated metal, optics and electronics, electrical appliances, machinery and equipment, motor vehicles, and other transport equipment, furniture, and other industries. This presents opportunities for the development of cooperation and trade with Iran in terms of capacities and the breadth of industrial production.

Keywords

Main Subjects

حوزة موضوعی: ایران و کشورهای عضو 8D

Scope: Iran and D8

JEL Classification: F13, F15, F53, F55

 

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Journal of Countries Studies
Volume 2, Issue 3
2024
Pages 407-447

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History

  • Receive Date: 31 October 2023
  • Revise Date: 19 November 2023
  • Accept Date: 28 November 2023

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