Regional Convergence Between Iran and Eurasian Economic Union (EAEU)
Regional economic-trade convergence, while seen as a move towards globalization, has significant benefits for member countries and regional arrangements. The main purpose of this paper is to evaluate the success of economic convergence and regional trade efficiency of Eurasian Economic Union (EAEU) member countries and Iran. For this purpose, the two main criteria of “homogeneity and degree of convergence of macroeconomic indicators” and “efficiency of intra-regional trade” for the Eurasian Economic Union member countries and Iran during the period 2000-2020 have been measured and evaluated. On the one hand, the results of the study of “homogeneity and degree of convergence of macroeconomic indicators” show that with economic convergence, the scope and gap of per capita income has decreased for some countries and increased for others. On the other hand, the results of the study on the “efficiency of intra-regional trade” show that during the period under review, the increase in the share of intra-regional trade between the EAEU and Iran has not been in line with trade development. In fact, the development and deepening of intra-regional trade has not only not led to the development of EAEU-Iran trade, but has also led to trade diversion. The analysis of strengths and opportunities, as well as weaknesses, threats and challenges, suggests that the lack of intra-regional trade development is due to the members’ export structure, and therefore, the possibility of intra-regional trade development and economic convergence in this union is weak. At the same time, it is hoped that by enhancing the economic structure of member countries and joint economic cooperation, it will be possible to reap the benefits of economic convergence.
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