Identification of key sectors of Iran's economy based on the hypothetical elimination method and the study of the possibility of realizing endogeneity in economic with respect to these sectors

Abstract

Determining the sectors in which investments can stimulate the economy and lead to more economic growth has always been the subject of many economic planners due to the limited and scarce resources. These sections have the most forward and backward linkages with other sectors of the economy, which are referred to as key sections. The purpose of this paper is to identify the key sectors of the Iran's economy using a hypothetical elimination method in the first step. In the second step, it is examined whether these key sectors are capable of achieving endogeneity in the Iran's economy. For this purpose, the 99-part input-output table of 1390, the last table published by the Iranian Statistics Center, was aggregated using an ISIC classification method in a 19-part input-output table. Then, using the hypothetical elimination method, the key sectors of Iran's economy were identified. Then, according to the endogeneity strategy in the Moghavemati economy policies, the position and influence of these sectors on the endogeneity of the country's economy from the perspective of two indicators of employment and import dependency were examined. The results of this study showed that five sections of industrial production, mining, transportation and warehousing, building and agriculture, forestry and fishing were also considered as key sectors of Iran's economy. In the current situation, only the building section has capable of achieving endogeneity in the Iran's economy and should therefore be recognized as the driving engine of the economy and in other key sectors for the realization of endogeneity, more efforts should be made to improve production procedures and the rate of employment in these sectors through internal capacities.

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