Document Type : Research Paper
Authors
1 ATU
2 علامه
Abstract
The aim of this article is to decompose the value-added of Iran’s gross exports in relation to different groups of major countries worldwide. For this purpose, four different methods have been used: the methods of Koopman et al. (2014), Wang et al. (2013), Miroudot and Ye (2021), and Borin and Mancini (2023). Applying these various methods to decompose the value-added of Iran’s gross exports leads to different results, especially concerning the issue of “double counting” in Iran’s economy. Therefore, this article focuses on the source-based decomposition method and the exporter-country perspective, as proposed by Borin and Mancini (2023), and draws on the empirical studies of Borin and Mancini (2023) and Feás (2023).
The main findings of this article can be summarized in four areas:
First, providing a brief review of the calculations using different methods for decomposing the value-added of Iran’s gross exports;
Second, using the multi-country input-output database for the year 2016, with a focus on Iran as empirical documentation;
Third, emphasizing the theoretical framework of Borin and Mancini (2023) among the proposed theoretical frameworks, using a source-based approach and the exporter-country perspective;
And finally, fourth, offering recommendations to policymakers for adopting strategies that increase domestic value-added, reduce vulnerability to external shocks, and promote sustainable economic growth.
The results show that Iran has a very weak role in global value chains.
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