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Iranian Economy in Twentieth Century: A Global Perspective

Listed author(s):
  • Hadi Salehi Esfahani

    ()

    (University of Illinois)

  • M. Hashem Pesaran

    ()

    (University of Cambridge and USC)

This paper examines the economic transformation of Iran in a global context through the twentieth century. At the start of that century, the Iranian economy had long remained stagnant, poor, and largely agrarian, with a marginal role in the world economy. By the turn of 21st century, Iran had transformed into a complex and relatively large economy with a non-negligible impact on many parts of the world. While the initial conditions and the evolution of domestic institutions and resources played major roles in the pace and nature of that transformation, relations with the rest of the world had crucial influences as well. This paper focuses on the latter forces, taking into account their interactions with domestic factors in shaping the particular form of economic development in Iran. We study the ways in which the development of the Iranian economy was affected by international price movements and by the ebbs and flows of trade, investment and worldwide economic growth. In considering these effects, we also analyze the role of domestic political economy factors and policies in enhancing or hindering the ability of domestic producers to respond to external challenges and opportunities.

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Paper provided by Economic Research Forum in its series Working Papers with number 452.

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Length: 39
Date of creation: 09 Jan 2008
Date of revision: 09 Jan 2008
Publication status: Published by The Economic Research Forum (ERF)
Handle: RePEc:erg:wpaper:452
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  1. Akbar E. Torbat, 2005. "Impacts of the US Trade and Financial Sanctions on Iran," The World Economy, Wiley Blackwell, vol. 28(3), pages 407-434, 03.
  2. Pamuk, Sevket, 2006. "Estimating Economic Growth in the Middle East since 1820," The Journal of Economic History, Cambridge University Press, vol. 66(03), pages 809-828, September.
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