Localization Procedure of International Interaction’s Indicators in Economic Development

Document Type : Research Paper

Authors

1 International Relations, Human Sciences, Tarbiat Modares, Tehran, Iran

2 Professor, Geography and Rural Planning, Human Sciences, Tarbiat Modares, Tehran, Iran

3 Associate Prof., International Relations, Human Sciences, Tarbiat Modares, Tehran, Iran

4 Assistant Prof., Department of International Relations, Faculty Human Sciences, University of Tarbiat Modares, Tehran, Iran

Abstract

Although the development consists of wide-ranging dimensions of social, political, economic, humanitarian and ecological; economic development has been placed in a higher position in politics and policy making. Considering the international dynamic development in era of new information and technology and most importantly globalization, the role of international interactions and management of such relations have been strongly increased in order to pursue the realization of the goals of economic development. Therefore, the process of localization of indicators of international economic interactions in economic development can play an effective role in realization of goals of economic development in Islamic Republic of Iran. Thus, the main question of this article consists of two key parts. Firstly, what are the indicators of international interactions and economic development? And secondly, how is the effectual process of the indicators of international interactions on economic development?
Methodology
In order to provide scientific answer to main questions raised above, this article began with searching through library and documentary texts to find facts and data related with indicators of international interaction and economic development as well as investigating most effective economic factors affecting interactions among different countries in the world. To combine library data with experimental data, the article investigated experiences of some successful developing countries and collected information and evidence of their success in terms of economic development. After grouping all secondary data, extracted through library and documentary studies, and drawing a table of frequency, it moved to the second phase of preparing a questionnaire based on more frequently focused data and indicator which was then distributed among the intellectuals of the chosen society of this study.
The questionnaire was distributed among 42 intellectuals and researchers active in different areas related to international relations, policy making, economic development, and foreign relations including experts of organization for trade development, ministry of foreign affairs, international chamber of commerce, and university professors. As the result, we could successfully collect the indicators of economic development as well as international interactions known as dependent and independent factors.
Results and discussion
As per our studies, indicators of international indicators consist of four main indicators as follows:
interactions with regional and international countries; interactions with state-owned regional and international institutions such as International Monetary Fund (IMF), The United Nations Conference on Trade and Development (UNCTAD), World Trade organization (WTO), World Bank (WB), …; interactions with non-governmental actors such as multinational or transnational companies; establishing regional and international treaties and actively participating such treaties and agreements.
Within our studies, we also encountered with popular economic indicators which are mainly affecting the international interactions, grouped as follows:
- Economic stability and openness; Trade liberalization; open doors policy; removal of tariffs; extrovert approach to the international trade, stable macro-economic plans, providing a healthy and reliable environment for competition among commercial private actors and investors, reform enforcement in economic infrastructures, prohibition of economic competition among political parties,
- Attracting foreign investment (directly, i.e. allowing investors ownership when participating in an investment or economic activities and indirectly; such as purchase of securities) which needs infrastructural reforms and improvement of the political and economic basis in order to set stability of the regulatory rules related with the investment in the economy (such as taxes, tariffs and business rules and regulations); the political and economic stability: reduced in the inflation rate, exchange rate instability, violence, crime, bribery and extortion; encouragement of transparency in investment guidelines and information for domestic and foreign investors in order to reduce corruption; reduced in the transfers’ costs and increased in profitability; increased in the number of investment agreements with developed countries; the Government's downsizing and the reduction of the State exclusive property on the industries, development of institutions,
- Export development; conduct of extrovert- oriented business model; improvement of the information and technical know- how and improvement of the infrastructure of the R&D, information and technological infrastructure, especially in the industrial and agricultural sector; establishment of the relationship between the domestic and international markets and pavement of the way to facilitate the competition conditions in the local and international markets, supporting the private sector to cut the dependency on the single-produce economy and facilitate the way for import/export of a diversity of goods; the increase of mutual or multilateral agreements; the development of free trade zones and the implementation of the free trade’s principles as well as providing the conditions for full employment; applying incentive policies to encourage diversification of exporting goods
And finally, countries’ concern and desire for economic development is to put the country and citizens in below condition:
- Improvement of the life quality of the citizens; i.e. life expectancy, job security (the unemployment rate), freedom of expression,
- Noticeable increase in production, income level and the power purchase parity
- Poverty reduction
- Transformation of society in terms of politics, economy and culture.
After collection and examination of such criteria (by the chosen society), we moved on to the second phase; i.e. the study of the effectual process of indicators of international interactions on economic development in I.R. of Iran and performed content and statistical analysis of the data using methods of data analysis through conceptual explanatory statistics as well as path analysis and regression (SPSS).
Conclusion
Findings confirmed our hypothesis and showed that economic development is considerably under the influence of parameters of international interactions, among which interactions with the regional and international countries was found as most effective factor and interactions with non-governmental actors, holding regional/international treaties, and interactions with state-owned regional/ international institutions placed in next layers accordingly. Consequently, localization of above indicators is effective on the management of international interactions with players of the international system which is eventually helpful in achievement of the country’s mission of economic development.

Keywords

Main Subjects


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