Analysis of the Petro-Chemical competition: A New Institutional Approach

Recent investment in Petro-chemical industry in Iran has made this industry more important within the context of Iranian national economy. Simultaneously, export-oriented approach in this industry has made it more competitive in the global context. This article tries to reveal different dimensions of this competition and the status of the petro-chemical industry in this respect, to bring the policy makers’ attention to the constructive competitive factors such as establishing institutions to upgrade technology, reducing asymmetric information, and internalizing the externalities rather than focusing on the restrictive competition factors such as unfair coalition trade policies. This theme is cultivated within a theoretical approach to the New Institutional Economics.