Index of Participation in Global Calue Chains of Iran and Member Countries of the Organization of Islamic Cooperation

Calculating participation index in global value chains has been very much considered and two calculation methods have been proposed. The calculation of this index in Iran and the countries of the Organization of Islamic Cooperation based on the commercial data of intermediate products and the experiences of successful countries in participating in these chains during the years 2008-2020 is one of the main goals of this article. The results showed that among the 56 Islamic countries, three countries, Malaysia, Singapore and Indonesia, with a participation index above 0.75, are countries with high participation in global value chains. The countries of Turkey and Brunei Darussalam have average participation in these chains with indices of 0.73 and 0.55, Iran is in the low participation group with an index of 0.38. The experience of Malaysia and Singapore showed that these countries have seen plans to be present and stabilize in global value chains in their industrial policies; The trend towards product complexity and production with higher added value and support for foreign direct investment are two common factors that have made these countries successful in participating in global value chains. Therefore, considering the importance of increasing Iran’s participation in global value chains, while adopting appropriate industrial and commercial policies to increase participation in chains, it is suggested to support small and medium-sized companies and put the necessary investment for more value-added products in their plans. Facilitate the presence of foreign partners in the country by revising the foreign direct investment laws.