International Business Management
ISSN: OnlineISSN: Print 1993-5250
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Abstract
Given the widespread and intense competition in the new global economic environment, the formation of commercial blocks can help countries to increase competitiveness. In this study, bilateral trade flows of Iran with the countries of the MENA group have been investigated using two models of gravity and spatial assessment. According to the results, countries have positive convergence and spatial econometrics confirms the existence of this convergence. GDP and labor force participation rate have a determining role in determining the volume of business in Iran and have positive coefficient. Synchronization variable of business cycles has no significant effect on the process of bilateral business because of its extremely low coefficient and the lack of significance. Since one of the variables affecting economic convergence is synchronization cycles from this perspective the economic convergence of Iran in the group should not be a priority.
How to cite this article:
Samaneh Derakhshideh and Sayyed Abdolmajid Jalaee. A Survey on Iran’s Economic Integration and its Business Cycle Synchronization with MENA Group Using Spatial Econometric Approach.
DOI: https://doi.org/10.36478/ibm.2016.2895.2901
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2016.2895.2901