The analysis of bilateral trade: The case of D8

The main pillar of economic globalization is trade liberalization that resulted to competitive national economies and then going to merging in global market. The communities that adapt their national economies to new competitive conditions and have an important role in this game have earned a lot of benefits from globalization phenomenon and economic competitiveness. One of the most important and fundamental concern of developing countries is the effect and consequence of economic globalization. In this paper, to investigate the bilateral trade among D8 Islamic countries group, the generalized gravity model is used. The results on gross domestic products (GDP) of host and guest countries and geographical distances are consistent to gravity theory. Furthermore, the variable of differences in economic structures and also, the variable of economic openness have a positive relationship to bilateral transactions flows.