Identification of Pivotal Factors on Export Diversification as a Desirable Policy of Resistance Economy

Due to instability in foreign exchange earnings, the Iranian economy has encountered negative economic growth in recent years. For the above-mentioned reason, stability of foreign exchange earnings and diversification of exports has been one of the main policies of resistance economy. The present study uses data from the Customs House , Statistics Center and Central Bank for the period from 1992 to 2015, and applies two-stage least squares method to study the factors affecting export diversification with an emphasis on resistance economy. Results derived from model estimation show that the turmoil in the foreign exchange market, the ratio of non-governmental facilities and sanctions lead to reduction in export diversification, but foreign direct investment and GDP increase result in export diversification. Therefore, in order to achieve the goals of the resistance economy, reducing of the turmoil in the foreign exchange market, directing and providing of insurance coverage to innovative sectors, increasing of foreign direct investment, improving the quality of education and effective communication between universities and industry are essential and necessary.