Investigating the Effect of Natural Gas advantage on the Comparative Advantage of the Selected Exporting Industries of the Country

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Economics and Political Science, Shahid Beheshti University

2 PhD student in Monetary Economics, Faculty of Economics and Political Science, Shahid Beheshti University

3 Assistant Professor, Faculty of Economics and Political Science, Shahid Beheshti University

Abstract

I.R. of Iran has the largest natural gas reserves in the world (about 17%), most of which is produced domestically and consumed in various sectors. This study sought to identify the main factors affecting the revealed comparative advantage of selected export industries of the country with the main focus on natural gas input during the period 1393-1383 based on ISIC classification. For this purpose, using the information of eight selected industries in the form of GMM, the effect of exchange rate factors, sanctions, market index, value added of each unit of energy delivered to each industry, gas price and the ratio of gas reserves to global reserves on trade performance index It is evaluated in the form of two models based on nominal variables and real variables. According to the results, the effect of exchange rate on gas price is negative and the effect of value added per unit of energy delivered to each industry is positive. The effect of the stock ratio variable is positive in the pattern of nominal variables and negative in the pattern of real variables. The results also showed that the effect of increasing the value added of each unit of energy delivered to each industry on the comparative advantage was positive, but less than the negative impact of the exchange rate.

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