Value Added Decomposition of Iran's Gross Exports

Abstract

Abstract The objective of this article is the implementation of various methodological approaches for decomposing the value-added of Iran's gross exports and calculating the differences in the results of these approaches in the Iranian economy. This paper provides a systematic analytical framework and evaluates different methodologies and their fundamental differences in the Iranian economy. The Borin, Mancini (2023) decomposition method, utilizing a resource-based approach and the perspective of the exporting country, is considered as the foundational analysis for the value-added decomposition in gross exports. The contribution of this paper can be summarized in the following four contexts: Firstly, it presents a brief overview of computations using various methodologies for the value-added decomposition of Iran's gross exports. Secondly, it utilizes inter-country input-output database (ICIO) for the year 2016, considering Iran, for empirical documentation. Thirdly, among the proposed theoretical frameworks, it focuses on the Borin, Mancini (2023) framework with a resource-based approach and the perspective of the exporting country. Fourthly, it provides a structural interpretation of all methods for the Iranian economy in 2016. JEL Classification: D57, F14