The role of the Iranian Commodity Exchange Market in Removing Obstacles to Production in line with Economic Resistance Doctrine

Dashtbani, Yavar; Mohammadi, Majid

The role of the Iranian Commodity Exchange Market in Removing Obstacles to Production in line with Economic Resistance Doctrine

Document Type : Original Article

Authors

Yavar Dashtbani ¹
Majid Mohammadi ²

¹ PhD in Economics, Faculty of Economics, Islamic Azad University Science and Research Branch, Tehran, Iran.

² PhD student in Agricultural Economics, Faculty of Agriculture, University of Tehran, Tehran, Iran.

Abstract

The stock market mechanism has been effective in enhancing the market structure in Iran by the virtue of reducing price fluctuations, regulating markets, adjusting supply and demand, as well as controlling inflation. The aim of the present study is to examine the effectiveness of the Iranian Commodity Exchange Market for transitioning towards a resistive economy. For this purpose, this paper examines the factors affecting the GDP _ here taken as the main index indicating the transition towards a resistive economy. The paper utilizes the vector self-explanatory model with discrete intervals to analyze seasonal data between 1393 and 1401. Thereafter, based on the opinions of 26 experts in this sector, the paper applies the SWOT model to determine the strengths, weaknesses, opportunities, and threats presented by the Iranian Commodity Exchange market, and accordingly provides some policy recommendations. The results obtained indicate a positive and significant relation between commodity trading volume on the exchange market and GDP. Specifically, the results indicate that with a percentage increase in the trading volume on the commodity exchange market, the gross domestic product will increase by 1.21 percent. Governmental bodies such as the Ministry of Agricultural Jihad, the Ministry of Security and the Ministry of Economic Affairs and Finance can further pave the road towards growth of this sector by strengthening relationships with producers and merchants and guiding them towards the commodity exchange market. Moreover, the parliament and the government can facilitate the participation of companies in the Iranian Commodity Exchange market by enacting protective laws, as well as granting tax incentives and providing credit to small and large enterprises.

Keywords