Evaluation of the level of complexity of products in the mining and mineral industries of Iran in export destinations

Document Type : applicative

Authors

1 Assistant professor of foreign trade department of Institute for Trade Studies and Research (ITSR)

2 Faculty member of the Foreign Trade Research Group, Institute of Business Studies and Research

10.30473/jier.2025.74839.1498

Abstract

The mining and mineral industries sector plays a vital role in the Iranian economy. Despite Iran’s 2.4% share of global production of these products, it accounts for only 0.6% of global exports due to its focus on raw and less processed products. The aim of this paper is to assess the level of complexity of the exported products of this sector. Based on the economic complexity approach and relevant indicators extracted from the Harvard University Atlas of Economic Complexity, this study covers 12 mining sector activities and 450 goods (according to HS6). According to the findings, the degree of complexity of Iranian mineral products (0.0134) is lower than the global average (0.127) and reflects a focus on exports of less processed products. About 85% of Iranian exports are focused on the production of basic iron and steel (ISIC 2410) and the production of basic copper and aluminum products (ISIC 2420). Market analysis shows that Iran’s main export destinations (China, Iraq, Turkey) with a share of about 60 percent usually receive fewer complex products from Iran, while exports to higher-quality markets (such as Europe) are of higher complexity.
According to the findings, the production and export of more complex products in each field of activity increases the complexity of Iran's export portfolio and increases added value and economic growth. Finally, it was recommended to expand the export of mineral products, expand research and development, utilize new technologies, diversify end products, and actively participate in international trade agreements.

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Journal of Industrial Economics researches
Volume 9, Issue 31
September 2025

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History

  • Receive Date: 07 June 2025
  • Revise Date: 02 August 2025
  • Accept Date: 01 September 2025

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