Iranian Trade Potentials with Islamic South-West Asian Countries in High-Tech. Goods: Strategic Policies

High-Tech. Industries / Export Development / South-Western Asia / Gravity Model Deepening economic integration with Islamic countries and developing technology have been emphasized as two important plans by the “Sanade Cheshm Andaze 20 Saleye Iran I.R.”. In this paper, we examine the consistency of these two aims. Indeed, we want to know if these two plans go in the same direction, or they should be followed independently. Based on recent theoretical and econometric developments, we use an empirical gravity equation to estimate the Iranian bilateral export and import potentials with ISWA countries. The results show that Iran does not share great trade potentials with those countries in high-tech. industry. The total export potential of the country is about 43 million US-dollars, contrary to 100 million US-dollars for its import potential. In addition, these potentials are unequally distributed among the Iranian ISWA partners. In short, Turkey, Pakistan, Bahrain, Qatar, Egypt, Azerbaijan, Saudi Arabia, Kuwait, and United Arab Emirates are recognized as the most suitable trade partners for Iran in the group