The Common Grounds for Cooperation between

Iran and South Korea

 

Masoud Hashemian, M.A.    Yousef Hassan Pour, M.A.

 

COMMON GROUNDS / TRADE POTENTIALS / IRAN AND SOUTH KOREA

 

In order to expand economic and trade cooperation between countries of the world, the coherent prudent planning is needed. The prudent and coherent planning on the other hand requires sufficient knowledge about trade and economic capabilities of trade partners.

In this paper, taking into account the above mentioned considerations, attempts have been made to identify the common grounds for cooperation between Iran and South Korea with a view to better utilizing the new opportunities in this respect. It has to be noted that in most empirical research in order to identify the trade potentials between countries indexes of potential complementarities have been utilized.

In this paper by brewing on the ITC classification, the degree of trade similarity three digit code between the two countries is calculated. Then in order to precisely investigate the degree of similarity in different
sub-sections group of 14 products the similarity index is calculated. Furthermore by employing TPI and RCA indexes the comparative advantages of the two countries are provided.

And finally for promoting economic and trade cooperation between the two certain recommendations have been put forward.