The Optimum Level of Non-Oil Exports: A Theatrical Proposal on Iran's Case
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Abstract:
Iran is one f the biggest oil producer and exporter of the world. Due to the special administrative and constitutional structure of the country, i.e. economic, social and political reasons, the government budget and revenues depend heavily on oil exports. The aim of this article is to suggest a theoretical proposal on the optimum level of non-oil exports such that it will clear up the idea of export promotion of non -oil exports and being” independent of oil revenues” not only for official authorities, but also be appropriate and meaningful for the economic agents to continue the proper activities. In order to reduce the dependence on oil revenues a level of non-oil exports should be considered such that the expected costs of holding this level are minimized. This optimum level has been analyzed with the selected strategy arising from the administrative and legal structures. The optimum level with respect to a benchmark was estimated, and finally analyzed and compared the relationship between the actual level and the optimum level of non-oil exports.
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Journal title
volume 9 issue 10
pages 89- 101
publication date 2004-04-01
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