Dr. Ebrahim Ali Razini

Abstract:

Copper plays a major role in the economic development of countries, and in fact, has a correlation with growth in industrial products. Thus, copper industry can also play an important role in the economic development and become a major source of foreign currency revenues of the country. This Study seeks to assess the competitiveness Iran's copper industry.

In order to assess and calculate competitiveness, the unit cost (UC) ratio was used. This index is divided into three indicators of internal competitiveness export competitiveness and comparative advantage. At first the above mentioned indicators were calculated for "National Iranian Copper Industries Company" and "Shahid Bahonar Copper Industries Company", in order to assess their competitiveness. In addition, the effects of the implementation of Targeted Subsidies Plan, increase in foreign exchange rates and tariff reductions on the competitiveness of the two companies, were separately analyzed, and then the combined and simultaneous effect of the implementation of these three policies on the competitiveness of the two companies was assessed. The results indicate that if the targeted subsidies Plan (i.e. removal of all energy subsidies) and the foreign exchange rate increase were simultaneously and fully implemented, the competitiveness of National Iranian Copper Industries Company and would raise to 0.69 in 2011 and 0.45 in 2012, and the competitiveness of Shahid Bahonar Copper industries Company would reach 0.90 in 2009 and 2010, and 0.96 in 2011.

Keywords:

competitiveness, Iran’s copper industry