Participation and Vertical Specialization in Iran's Economic Activities

The purpose of this paper is to analyze Iran's role in the global value chain (GVC) using data from the 2016 Inter-country Input-Output  (ICIO) tables. By examining Iran's forward and backward GVC participation indicators, the study aims to provide insights into the country's level of integration within international production networks. This paper adopts a Borin and Mancini (2023) approach, utilizing the ICIO tables to calculate Iran's forward and backward GVC participation indicators. These indicators serve as proxies for assessing Iran's involvement in producing inputs for re-export and using imported inputs for export-oriented production, respectively. The methodology involves rigorous data analysis and interpretation to derive meaningful insights. The findings of this study reveal that Iran plays a negligible role in the global value chain. Both forward and backward GVC participation indicators indicate limited integration with international production networks. This suggests a relatively isolated position for Iran in terms of GVC activities, highlighting potential challenges and opportunities for the country's economic development. This paper contributes to the literature by providing a comprehensive analysis of Iran's position in the global value chain using the latest available data. By focusing on forward and backward GVC participation indicators, the study offers novel insights into Iran's level of integration within international production networks. The findings have implications for policymakers, researchers, and practitioners interested in understanding Iran's economic dynamics and identifying strategies for enhancing its participation in the global economy.