Teachings of Historical School for the Analysis of Iran's Economy

The history is a valuable mine of human experience and historical school was one of the heterodox schools of economic thought that by criticizing the teachings of classical school, has used history and it’s objective investigation as a cornerstone for the revise of political economy. The most important criticism of historical school to classical school are: universalism, imperfect psychology based on self-interest and extremism in deductive method. On the one side, historical method is in conflict to Austrian school and on the other hand was a background for the emergence of American Institutional school. The most important teachings of historical school are: Application of historical method in the analysis of economic phenomenon, using inductive method, using economic statistics, belief on the uniqueness of each economy and thus the necessity of indigenous development model, avoiding abstract models in economic analysis, the necessity of finding the interaction of economic phenomenon to non-economic factors and an endeavor to understand the evolution of economies. In this paper by using the teachings of historical school, we argued that adopting historical method, provide the possibility of analyzing historical backwardness of Iranian Economy, Understanding evolutionary structure of Iranian Economy and preparing indigenous model of economic development in Iran.