Designing a Model of Export Incentives for the Development of Iran's Exports: Grounded Theory Approach

Document Type : Article extracted from thesis

Authors

1 Ph.D.student of Economics, Economic Science, Aras International Campus, University of Tabriz, Iran.

2 Professor,of the Faculty of Economics and Management, University of Tabriz, Iran

Abstract
Background and Objective: The Iranian economy's reliance on oil revenues has heightened its vulnerability to external shocks. Recent experiences with sharp declines in oil prices have demonstrated that an economy dependent on oil revenue is highly susceptible to global market fluctuations. Consequently, the development of non-oil exports has emerged as a fundamental strategy to mitigate economic vulnerability and establish a sustainable revenue stream. This strategy necessitates effective policy instruments, particularly export incentives. Therefore, the aim of this study is to design a model of export incentives to foster export development in Iran.
Methodology: The study encompasses two phases. In the qualitative phase, in-depth interviews were conducted with experts. In the quantitative phase, questionnaires were distributed and collected. The data utilized in this study pertain to recent years. The statistical population for the quantitative phase consists of active exporters registered with the Trade Promotion Organization of Iran and the Iran Chamber of Commerce, Industries, Mines, and Agriculture; official statistics estimate this population at approximately10,000 formal exporting firms. Following the derivation of the theoretical model in the qualitative phase, structural equation modeling (SEM) was employed to examine the relationships between constructs and test the hypotheses.
Results and findings: The results indicate that five categories of export incentives-financial, informational, marketing, and operational incentives, as well as regulatory environment factors-have a positive and significant impact on export development. All primary research hypotheses were confirmed. The model's coefficient of determination was found to be 48.2%, indicating satisfactory explanatory power. Based on the performance importance analysis and the synthesis of statistical results, financial incentives ranked first in importance, followed-in descending order-by marketing incentives, operational incentives, informational incentives, and environmental regulations. This ranking can serve as a basis for resource allocation and policy prioritization in the export sector. Consequently, it can be concluded that the sustainable development of non-oil exports requires a comprehensive and coordinated approach; all dimensions of export incentives must be strengthened in an integrated manner. Furthermore, it is essential to consider Iran's specific contextual conditions, including sanctions and currency fluctuations. It is hoped that the findings of this research will contribute-however modestly-to improving the country's export policy and fostering the sustainable development of non-oil exports.

Keywords

Subjects

 
1.    Ahmed, Z. U., Julian, C. C., & Majar, A. J. (2006). Export incentives and international entrepreneurship in Malaysian firms. The International Journal of Entrepreneurship and Innovation, 7(1), 49-57.
2.    Akbar, J. S., & Rezeki, N. S. (2021). Analysis of economic growth and export development of Bangka Belitung Islands. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4).
3.    Baldwin, R. E. (2021). Economic development and export growth: A study of Northern Rhodesia, 1920-1960. University of California Press.
4.    Başarır, Ç., & Sarıhan, A. (2018). The effect of investment incentives and export credits on country export: The case of Turkey. MANAS Sosyal Araştırmalar Dergisi, 7(3).
5.    Brum, A. L. d. S., dos Santos, A., & Paschoarelli, L. C. (2023). Grounded theory: Collaboration in design management in the context of exports. Pensamentos em Design, 4(1), 1-20. https://doi.org/10.36704/pendes.v4i1.8969
6.    Brum, A. L., Ferro, G. d. S., & Heemann, A. (2022). Theoretical bases for an export-oriented design method. Blucher Design Proceedings, 9(5), 416-7244. https://doi.org/10.5151/ped2022-4167244
7.    Çalışkan, E., & Aysan, H. (2025, September 5). Strategic export innovation management: A holistic approach to achieving sustainable global trade performance. International Journal of Business and Management, 4(2). https://doi.org/10.56879/ijbm.v4i2.165
8.    Charykova, O. G., Otinova, M. E., & Tiutiunikov, A. A. (2022). Key directions of agricultural export development in Russian regions. Economy of Regions, 18(1), 193-207. https://doi.org/10.17059/ekon.reg.2022-1-14
9.    Di Cintio, M. (2020). Knowledge and export modes: Which export strategy boosts firms knowledge acquisition? Review of Economic Analysis, 12(4), 461-483. https://doi.org/10.15353/rea.v12i4.1956
10. Edeh, J. N., Obodoechi, D. N., & Ramos-Hidalgo, E. (2020). Effects of innovation strategies on export performance: New empirical evidence from developing market firms. Technological Forecasting and Social Change, 158, Article 120167. https://doi.org/10.1016/j.techfore.2020.120167
11. Evans, A. (2021). Export incentives, domestic mobilization, & labor reforms. Review of International Political Economy, 28(5), 1332-1361. https://doi.org/10.1080/09692290.2020.1788113
12. Fanta, A. B., & Teshale, G. B. (2014). Export trade incentives and export growth nexus: Evidence from Ethiopia. British Journal of Economics, Management & Trade, 4(11), 111-128.
13. Ginting, A. P., Lubis, S. N., & Chalil, D. (2023). Arabica coffee export development strategy in North Sumatra, Indonesia. IOP Conference Series: Earth and Environmental Science, 1241(1), Article 012037. https://doi.org/10.1088/1755-1315/1241/1/012037
14. Haidar, J. I., & Mirjalili, S. H. (2016). Bridging Iranian exporters with foreign markets: Does diaspora matter? Journal of Economic Integration, 31(3), 609-630. https://doi.org/10.11130/jei.2016.31.3.609
15. Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). An introduction to structural equation modeling. In Partial least squares structural equation modeling (PLS-SEM) using R: a workbook (pp. 1-29). Cham: Springer International Publishing.
16. Haryadi, H., Umiyati, E., & Dhora, S. T. (2021). Competitiveness and export development strategy for Indonesia's creative economy sector in the ASEAN market. Journal Perspektif Pembiayaan dan Pembangunan Daerah, 9(2), 127-138. https://doi.org/10.22437/ppd.v9i2.11832
17. Heriqbaldi, U., Esquivias, M. A., Samudro, B. R., & Widodo, W. (2023). Do national export promotion programs in Indonesia support export competitiveness? Heliyon, 9(6), Article e16922.https://doi.org/10.1016/j.heliyon.2023.e16922
18. Hossain, K., Che Abdullah, A. S., Mohd Balwi, M. A. W. F., Lubis, A., Azizan, N. A., Alam, M. N., & Taha, A. Z. (2023). Linking entrepreneurial orientation with export performance: Mediation effects of multiple differentiation strategies. Journal of Business & Industrial Marketing, 38(9), 1769-1793. https://doi.org/10.1108/JBIM-07-2021-0338
19. Hosseinesmaeili Shahmirzadi. (2013). Selecting appropriate strategy to enhance petrochemical products export. International Journal of Engineering and Advanced Technology, 2(5), 2249-8958.
20. Hox, J. J., & Bechger, T. M. (1998). An introduction to structural equation modeling. Family science review, 11, 354-373.
21. Kasradze, T., Nutsubidze, M., & Kapanadze, P. (2022). Recent opportunities for increasing Georgian wine export: Incentives or obstacles to improving wine quality. European Journal of Interdisciplinary Studies, 8(1), 68-81. https://doi.org/10.24818/EJIS.2022.06
22. Leonidou, L. C., & Katsikeas, C. S. (2024). Reprint: The export development process-An integrative review of empirical models. In S. Samiee & C. S. Katsikeas (Eds.), Key developments in international marketing: Influential contributions and future avenues for research (pp. 73-119). Palgrave Macmillan. https://doi.org/10.1007/978-3-031-17322-6_5
23. Malca, O., Peña-Vinces, J., & Acedo, F. J. (2020). Export promotion programmes as export performance catalysts for SMEs: Insights from an emerging economy. Small Business Economics, 55(3), 831-851. https://doi.org/10.1007/s11187-019-00185-2
24. Moghadasi, N., Khanmohammadi, M., Saremi, H., & Haghighatbin, M. (2022). Investigating and measuring physical-environmental and social resilience in residential complexes, case study: Koi No Bonyad residential complex (asp towers). Urban Design Discourse, 3(2), 69-96.
25. Mohammadbeigi, K. F., Daniali, S., & Mohammadbeiki, Y. (2020). Prioritizing factors affecting Iranian non-oil export using group decision making approach based on hierarchical analysis process. Bulletin of the Transilvania University of Braşov Series V: Economic Sciences, 13(62), 60-66. https://doi.org/10.26425/2309-3633-2019-4-60-66
26. Montes Ninaquispe, J. C., Pantaleón Santa María, A. L., Ludeña Jugo, D. A., Castro Muñoz, W. T., Farias Rodriguez, J. C., Maco Elera, B. H., & Vasquez Huatay, K. C. (2024). Peruvian agro-exports’ competitiveness: An assessment of the export development of its main products. Economies, 12(6), Article 156. https://doi.org/10.3390/economies12060156
27. Munawar, F., & Munawar, G. (2024). Analysis of export development of Indonesian craft industry products using business intelligence platform. EAI Endorsed Transactions on Scalable Information Systems, 11(4). https://doi.org/10.4108/eai.21-9-2023.2345666
28. Okafor, L. E., Bhattacharya, M., & Apergis, N. (2020). Bank credit, public financial incentives, tax financial incentives and export performance during the global financial crisis. The World Economy, 43(1), 114-145. https://doi.org/10.1111/twec.12848
29. Onah, B. C., Amuka, J. I., Asogwa, F. O., Onuigbo, F. N., & Ezeudeka, C. F. (2022). Does incentive improve export performance of firms? An evidence. Journal of Economics, Finance and Accounting Studies, 4(1), 437-444.
30. Onaran, Z. A., & Ozturk, T. Y. (2008). The effects of economic policies and export promotion on export revenues in developing countries. Journal of Dogus University, 9(1), 60-71.
31. Özsungur, F. (2020). 5W principle in export incentive. In F. Özsungur (Ed.), Global trade in the emerging business environment (pp. 145-165). IGI Global. https://doi.org/10.4018/978-1-7998-3744-2.ch008
32. Qiu, X., Lu, X., & Wang, K. (2022). Effect of financial development on export trade in China. Journal of Advanced Computational Intelligence and Intelligent Informatics, 26(4), 609-618. https://doi.org/10.20965/jaciii.2022.p0609
33. Rolfe, R. J., Woodward, D. P., & Kagira, B. (2004). Footloose and tax free: Incentive preferences in Kenyan export processing zones. South African Journal of Economics, 72(4), 784-807.
34. Sadeghi, T., Rezaei, H., Karbalaee Esmaili, (2011). The critical success factors (CSFs) in export planning. International Journal of Business and Management, 6(9), 165-177.
35. Sezai, A. (2020). Evolution of the product space and a new proposal for Turkey's export incentive system. Presidency of Strategy and Budget.
36. Sheng, Y., & Changyue, Z. (2022). China won't export development model, opposes imposition on others. Guardian (Sydney), (2030), 12-12.
37. Simeon, K., & Kamande, M. (n.d.). International trade and export promotion in Rwanda: A case of technical barriers to trade national enquiry point.
38. Srhoj, S., Vitezić, V., & Wagner, J. (2023). Export boosting policies and firm performance: Review of empirical evidence around the world. Jahrbücher für Nationalökonomie und Statistik, 243(1), 45-92.
39. Taboli, H., & Yadollahi, M. (2011). Pistachio export development strategies in Kerman province, Iran. African Journal of Business Management, 5(7), 674-2681. https://doi.org/10.5897/AJBM10.1361
40. Tavassoli, M., & Naami, A. (2020). The impact of internet marketing on the export development for agricultural products in food companies. Agricultural Marketing and Commercialization Journal, 4(2), 149-160.
41. Ullman, J. B., & Bentler, P. M. (2012). Structural equation modeling. Handbook of psychology, second edition, 2.
42. Valiollahpour, M., Shabani, H., Hoseinzadeh, M., & Hasannejad, F. (2014). Studying Iran international import-export statues based on dollar value in global trade (Case study: Iran's trade with Europe Union during the period 2003-2013). International Journal of Economics and Management Engineering, 8(5), 1501-1505.
43. Widati, S. T., Suparno, S., & Mukhtar, S. (2025, August 11). Understanding how export stimuli, export knowledge, product standards, and marketing strategies shape the export performance of Indonesian MSMEs. Journal of Digital Business and Innovation, 1(3). https://doi.org/10.64243/jodigbi.01.3.04
44. Wikam, B. N. (2022). Export marketing strategies and performance of large scale manufacturing firms in Kenya (Doctoral dissertation, University of Nairobi).
45. Yatsenko, O., Yatsenko, O., & Dendeberia, D. (2024, December 21). Strategising the behavior of exporters in target global markets. Scientific Notes, 37(24), 131-137. https://doi.org/10.33111/vz_kneu.37.24.04.19.131.137
46. Yu, B., Sheng, T., & Zhao, J. (2022). Analysis of the current situation and influencing factors of Chinese SMEs' export development under APEC digital economy. Scientific Journal of Economics and Management Research, 4(2), 221
 
 
 
 
 
 
 

  • Receive Date 27 July 2026
  • Revise Date 08 September 2026
  • Accept Date 10 October 2026
  • First Publish Date 12 October 2026
  • Publish Date 20 February 2027