Economic Integrations for Iranian Economy Apply of Cluster Analysis

In the present time, phenomenon like globalization, regionalism and economic integration are the basic issues which bring many positive consequences to the world economy. Regionalism and economic integration are one of the ways that developing countries can adopt to collate the globalization process. To acknowledge their own abilities or, to settle the commercial and economic disputes in their regions by using their comparative advantages, and getting the inherent readiness to merge to the world economy with a longer process.
This paper, firstlly reviews the process of globalization, economic integration and their effects on domestic and international economies. Then recalls some evidences on this basis from Iran and examins the appropriate economic integration for the selected Middle East countries by using cluster analysis and utilizing the “ Generalized Gravity Model” and its estimation on “Panel Data” method. Generalized gravity model with Panel Data method, is done using variables such as GDP, economic structure, population, geographic situation, cultural contributions and per capita income.
The results show that economic integration on the base of indices GDP, STR and POP; globalization indicators could increase the volume of trade and create opportunities for more exports and imports. In the other words, the economic integration could increase trade potential of Iranian economy according to GDP, STR, and POP indicesly by 153 percent, 99 percent and 28 percent respectively.
JEL Classification: C33, F13, F15