The Role of Contiguity in the Establishment of Economic Blocks among OIC Countries (With Emphasis on the Agricultural Sector)

Today in Process of economic integration and Common market establishment, Economic blocks have special importance. In this regard, neighborhood, integration and economic similarity, co language are influencing factors on deepening of commercial and economic relationship between countries. However, at a general concept, aforementioned are subset from broad concept of contiguity in commercial trade, trade index measurement such as Cosines criteria and trade concentration and economic homogenous indexes e. g. Economic freedom degrees, per capita income convergent, state role on economy, are explaining countries strategies towards blocking and regional- business integration. The objective of this study is to examine the possible enhancement of regional trade integration of agricultural products among the Organization of Islamic countries (OIC) members. By implementing various blocks, it is expected that contiguity may reduce heterogeneity in the structure of the OIC countrie's economies, and in contrast, raise the degree of trade similarity. Accordingly, a statistical analysis of agricultural trade relationship in the regional blocks, in addition to their degrees of economic freedom and economic similarity, enables us to evaluate a reduction in the economic heterogeneity of the blocks established actually and potentially in OIC. The implication is that deepening trade integration in the current blocks (such as ECO, GCC) based on contiguity will expand inter-block trade flows among the OIC countries.