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In this paper, we propose a power-efficient distributed binary self-concatenated coding scheme using iterative decoding (DSECCC-ID) for cooperative communications. The DSECCC-ID scheme is designed with the aid of binary extrinsic information transfer (EXIT) charts. The source node transmits self-concatenated convolutional coded (SECCC) symbols to both the relay and destination nodes during the first transmission period. The relay performs SECCC-ID decoding, where it may or may not encounter decoding errors. It then reencodes the information bits using a recursive systematic convolutional (RSC) code during the second transmission period. The resultant symbols transmitted from the source and relay nodes can be viewed as the coded symbols of a three-component parallel concatenated encoder. At the destination node, three-component DSECCC-ID decoding is performed. The EXIT chart gives us an insight into operation of the distributed coding scheme, which enables us to significantly reduce the transmit power by about 3.3 dB in signal-to-noise ratio (SNR) terms, as compared with a noncooperative SECCC-ID scheme at a bit error rate (BER) of 10-5. Finally, the proposed system is capable of performing within about 1.5 dB from the two-hop relay-aided network's capacity at a BER of 10-5, even if there may be decoding errors at the relay.