Assessment of the Product Complexity Level in Iran’s Mining and Mineral Industries Across Export Destinations

Document Type : applicative

Authors

Assistant Professor, Institute for Trade Studies and Research, Tehran, Iran.

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 and to analyze its gap with the global average product complexity. This study covers 12 mining sector activities and 450 goods (according to HS6) based on the economic complexity approach and relevant indicators extracted from the Harvard University Atlas of Economic Complexity. According to the findings, the degree of complexity of Iranian mineral products (0.0134) is lower than the global average (0.127) and indicating a focus on exports of less processed products. About 85% of Iranian exports are concentrated 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 approximately 60% of Iran’s exports are directed toward key destinations such as China, Iraq, and Turkey, which typically receive less complex products. In contrast, exports to higher-end markets (like Europe) tend to consist of goods with greater complexity.  This study indicates that by shifting toward the production and export of more complex products across various sectors, Iran has the potential to enhance the complexity of its export portfolio, increase value-added, and stimulate economic growth. Key recommendations include expanding research and development, leveraging advanced technologies, diversifying final products, and actively engaging in international trade agreements, all aimed at promoting the export of mineral products.

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Main Subjects

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Journal of Industrial Economics researches
Volume 9, Issue 31
September 2025
Pages 71-92

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History

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

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