Analyzing the Effects of the Economic Complexity Index on various Components of Economic Defense: A Case study of the Islamic Republic of Iran

Developing the knowledge-based economic sector has been identified as a key strategy for enhancing economic resilience amidst sanctions, and furthermore, the Economic Complexity Index has been proposed as a key indicator for assessing the development of this sector. On the other hand, some argue that improvements in terms of economic complexity index not only signal the enhancement of economic resilience against sanctions, but further, ensure of resilience against other external economic and political pressures. This paper draws on the inductive-comparative method, as well as a combination of qualitative and quantitative methods to examine and estimate the strength of the relationship between economic complexity index and economic defense components. For this purpose, using the foundation data method and open and selective coding, the modus operandi of this paper first identified the most important components of economic defense. Subsequently, based on the results obtained, a questionnaire was designed and to engage the opinion of scientific and executive experts in this field. Finally, the results of the survey were analyzed using the fuzzy Delphi method. The results obtained confirm the effect of economic complexity index on economic defense, and further highlight its role in areas such as, deterrence capacity, coping capacity and the ability to achieve economic defense strategy goals. On the other hand, in the context of the Iranian economy, the results indicate that enhancing the country's economic resilience in relation to crises and international sanctions is contingent on improving the main variables of the economic complexity index, i.e.: the development knowledge-based economy; entrepreneurship and job creation; improving the quality of domestically produced goods; increasing economic growth and prosperity; enhancing economic authority and economic flexibility; developing the agricultural sector; developing the production chain; increasing exports; enhancing the capacity of the country for engaging in economic diplomacy; reducing Iran's economic dependence on imports; and increasing the investment level in the economy.