Impact of Export Diversification and Export Composition on Economic Growth of Iran

The impact of export diversification and export composition, as two major parts of export section, on economic growth (case study of Iran) are the major purposes of this paper. To extracting technology level of export basket, bases on SITC 3 digit codes, as our innovation, we use TCC Systerm software to convert Iranian export HS data to SITC. Using FMOLS for 1992-2017 duration, we studied the effect of export diversification and its composition on Iranian economic growth. We found that one percent decrease in export diversification leads 0.158 percent decrease in economic growth, and also one percent increase in share of high-technology exports leads to 0.39 percent increase in economic growth. Therefore, it is necessary to establish Iranian non-oil export promotion strategy on both new comparative advantage creation and high technology products.