The Role of Governance and Economic Indicators in Shaping Business Policies: A Fuzzy Delphi Approach

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Economics, Faculty of Management and Economic, Aligudarz Branch, Islamic Azad University, Aligudarz, Iran.

2 Assistant Professor, Department of Economics, Shahryar Branch, Islamic Azad University, Shahryar, Iran.

3 Assistant Professor, , Department of Economics, Faculty of Management and Economic, Aligudarz Branch, Islamic Azad University, Aligudarz, Iran.

4 Assistant Professor, Department of Mathematics, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

Abstract

Government institutions and policies play a crucial role in shaping the volume and nature of international trade and influencing its impact on economic growth. However, in recent years, fluctuations regarding trade and business policies in Iran have become more pronounced, emerging as a chronic issue. These fluctuations can contribute towards economic and political instability, thus inflicting adverse effects on society. Identifying the underlying causes of such fluctuations is, therefore, of critical importance. The primary objective of this research is to identify the factors that affect commercial policies in Iran. For this purpose, by employing the Fuzzy Dematel method, this study analyses the factors affecting Iran's commercial policies, drawing on data from a field study conducted in 1402.
The results obtained show that that fluctuations regarding trade policy are the product of multifaceted economic and institutional factors. Concretely, the study reveals that sanctions, exchange rate fluctuations, natural resource abundance, inflation, political stability, government effectiveness, membership in the World Trade Organization (WTO), corruption, customs tariffs, and the degree of trade openness significantly influence trade policy. Furthermore, the strongest interactions among the variables occurs in the following order: exchange rate fluctuations, sanctions, trade openness, political stability, WTO membership, inflation, government effectiveness, corruption control, customs tariffs, and natural resource abundance.

Keywords

References

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Journal of Defense Economics and Sustainable Development
Volume 10, Issue 35
April 2025
Pages 163-188

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