Iran’s Trade Promotion Strategy and Eurasian Economic Union

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Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:

This study examines the opportunities facing Iran to revise its geo-economics’ approach to the Eurasian Economic Union’s member countries through four techniques: Cosine index, Finger and Crinin index, Grubel and Lloyd index and estimation potential trade index in 2019. The results of the Cosinus index indicate that Iran has the highest degree of similarity with Belarus 0.858 and the correlation coefficient calculated with the Finger and Crinin index 0.918 confirms these results. According to the Grubel-Lloyd index, Iran had the most intra-industrial trade with the Eurasian Union in the product of all skin types and raw skin and Leather. 0.943. The results of the trade potential index showed that Iran has made little use of its trade capacity with Eurasian countries, so that, for example, it has only relied on 0.16% of the 1.8% of its export capacity to Russia. On the other hand, the article moves on to identify and calculate a set of goods that have the highest degree of intra-industrial trade as well as the highest export potential to Eurasian Union’s countries.Therefore, it is suggested that according to a long-term approach a country like Iran should look at the all three components of geo-economics (economy, geography, and power) in the same direction to secure its long - term interests through an effective regional convergence. These results can be a proper guideline to draw Iran's trade promotion strategy with Eurasian Union member states in order to revise the geo-economic approach of the country.

Language:
Persian
Published:
Journal of Central Asia and The Caucasus Studies, Volume:28 Issue: 118, 2022
Pages:
61 to 86
https://magiran.com/p2502766  
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