Unilateral Liberalization versus Regional Integration: The Case of ECO Member Countries
AbstractUsing an international dataset on bilateral trade for 137 countries in 2005, we estimate a gravity model to address the question of whether intra-Economic Cooperation Organization (ECO) trade is too low and whether the scale of trade at present is accounted for by regional integration or unilateral liberalization. The results of the gravity model confirm that intra-regional trade is lower than predicted by the gravity equation. The results also validates the theory that the present level of trade is attributed to regional agreements rather than unilateral liberalization, suggesting greater scope for regional cooperation among ECO member countries.
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Bibliographic InfoArticle provided by Department of Economics, The Lahore School of Economics in its journal Lahore Journal of Economics.
Volume (Year): 15 (2010)
Issue (Month): 1 (Jan-Jun)
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Bilateral trade; economic cooperation organization; regionalism.;
Find related papers by JEL classification:
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
- P45 - Economic Systems - - Other Economic Systems - - - International Linkages
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