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Towards OIC Economic Cooperation: Impacts of Developing 8 (D-8) Preferential Trade Agreement
(World Scientific Publ Co Pte Ltd, 2013) Othman, Jamal; Acar, Mustafa; Jafari, Yaghoob
The Developing 8 (D-8) comprises of eight developing countries (Turkey, Malaysia, Indonesia, Bangladesh, Pakistan, Iran, Egypt and Nigeria), all of which are OIC members with large Muslim populations. The D-8 has formed a freer trade alliance with the objectives to create new opportunities and enhance intra-trade relations while providing better standards of living for its citizens. This paper examines the trade impact of possible trade liberalization among the D-8 countries using a multi-country computable general equilibrium model, i.e., GTAP. Results indicate that while the D-8 intra-trade is expected to increase very substantially, not all member countries will experience a welfare gain under a free trade arrangement. Likewise, the impact on economic sectors differs substantially across countries.