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Unilateral Liberalization versus Regional Integration: The Case of ECO Member Countries

Author

Listed:
  • Jahangir Khan Achakzai

    (Department of Economics, University of Balochistan, Quetta, Pakistan.)

Abstract

Using 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.

Suggested Citation

  • Jahangir Khan Achakzai, 2010. "Unilateral Liberalization versus Regional Integration: The Case of ECO Member Countries," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(1), pages 27-44, Jan-Jun.
    • Handle: RePEc:lje:journl:v:15:y:2010:i:1:p:27-44
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    References listed on IDEAS

    as
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    Cited by:

    1. Shaista Alam, 2015. "The Effect of Preferential Trade Agreements on Pakistan’s Export Performance," Discussion Papers 2015-10, University of Nottingham, CREDIT.

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    More about this item

    Keywords

    Bilateral trade; economic cooperation organization; regionalism.;
    All these keywords.

    JEL classification:

    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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