Political Economy of Rent-Seeking: An Analysis of the Structural and Institutional Consequences of Oil and Gas Raw Material Exports
Subject Areas : Economicamiehossein Khorshidi Athar 1 , mohammad nematy 2
1 - PhD candidate in International Oil and Gas Contract Management and a researcher at the Imam Sadiq University
2 - Associate Professor, Faculty of Islamic Studies and Economics, Imam Sadiq University
Keywords: Political Economy, Rent-Seeking, Oil and Gas, Raw Exports, Institutional Analysis.,
Abstract :
The raw export of oil has long posed a persistent challenge, leading the Iranian economy to face profound structural problems. This research aims to critique the political economy of oil raw material exports in Iran through an institutionalist approach, analyzing the structural consequences of this phenomenon. In this context, a critical review of common approaches such as the Dutch Disease, rentier state theory, and the resource curse will demonstrate that these frameworks are insufficient to comprehensively explain the political economy of oil raw material exports in Iran. Subsequently, by employing an institutionalist theoretical framework and examining empirical evidence, the study analyzes the role of political, economic, social, and cultural institutions in perpetuating the raw export of oil and its consequences. The main focus is on how an inadequate institutional structure has directed the Iranian economy towards dependency on oil revenues, a rent-seeking culture, and the weakening of the private sector, rather than fostering production, innovation, and entrepreneurship.The findings of the study indicate that overcoming the challenge of oil raw material exports in Iran requires extensive systemic structural reforms in political and economic institutions, improvement in governance, strengthening public participation, and increasing social capital. Otherwise, the continuation of the current state will lead Iran towards a future filled with economic instability, inefficiency, and underdevelopment.
منابع:
Zurbach, Julien,2024, A Moral Economy of the Demos in Early Archaic Greece, https://doi.org/10.1093/9780191995514.003.0002, Pages 17–36.
Aspridis, G., Poulianou, L., & Koukoumpliakos, I. (2023). Management and Quality Management Principles in Ancient Greece and their Reflection Today. International Conference on Business and Economics - Hellenic Open University, 1(1). https://doi.org/10.12681/icbe-hou.5304
Sadiku ,Matthew N. O., Wang ,Yonghui, Cui, Suxia, Musa, Sarhan M.,2019, Political Economy: A Primer, 15 May 2019(Sretechjournal Publication) - Vol. 5, Iss: 5, pp 01-04
Claes, Dag Harald, 2022, Chapter 23: Oil and international institutions, Page Range: 356–370, DOI: https://doi.org/10.4337/9781839107559.00032
Mehlum, H., Moene, K., & Torvik, R. (2006). Institutions and the resource curse. The economic journal, 116(508), 1-20.
Sachs, J. D., & Warner, A. M. (2001). The curse of natural resources. European economic review, 45(4-6), 827-838.
Karl, T. L. (1997). The paradox of plenty: Oil booms and petro-states. University of California Press.
Beblawi, H., & Luciani, G. (Eds.). (1987). The rentier state. Croom Helm. Van der Ploeg, F. (2011). Natural resources: Curse or blessing?. Journal of Economic literature, 49(2), 366-420.
Corden, W. M., & Neary, J. P. (1982). Booming sector and de-industrialisation in a small open economy. The economic journal, 92(368), 825-848.
Rodrik, D. (2007). One economics, many recipes: Globalization, institutions, and economic growth. Princeton University Press.
Guiso, L., Sapienza, P., & Zingales, L. (2006). Does culture affect economic outcomes?. Journal of Economic perspectives, 20(2), 23-48.
Easterly, W. (2006). The white man's burden: Why the West's efforts to aid the rest have done so much ill and so little good. Penguin.
Samuelson, P. A., & Nordhaus, W. D. (2010). Economics. McGraw-Hill Education.
Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. New York: Crown Publishers.
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge university press.
Hodgson, G. M. (2006). What are institutions? Journal of economic issues, 40(1), 1-25.
Bellin, E. (2004). The political economy of the resource curse. Journal of international affairs, 58(1), 1-20.
Corrales, J., & Penfold, M. (2015). Dragon in the Tropics: Hugo Chávez and the Political Economy of Revolution in Venezuela. Brookings Institution Press.
Auty, R. M. (1993). Sustaining development in mineral economies: The resource curse thesis. London: Routledge.
Rystad Energy. (2022). Upstream cash flow to governments set to hit all-time high of $2.5. Retrieved from Rystad Energy: https://www.rystadenergy.com
Monsalve Farías ,Daniela, Manuel Puente Camba ,José,2022,Corruption and Oil Rent: an Empirical Analysis of Panel Data,Revista del CLAD Reforma y Democracia, Núm. 83 (2022), DOI: https://doi.org/10.69733/clad.ryd.n83.a264
Alexeev, Michael , Zakharov, Nikita,2022, Who profits from windfalls in oil tax revenue? Inequality, protests, and the role of corruption, Journal of Economic Behavior & Organization, Volume 197, May 2022, Pages 472-492
Farzanegan, Mohammad Reza ,2014,Can oil-rich countries encourage entrepreneurship?,CrossRef citations to date, Pages 706-725 | Received 18 Jan 2014, Accepted 26 Oct 2014, Published online: 20 Nov 2014,https://doi.org/10.1080/08985626.2014.981869
Choi, Seung Ginny, Henry Storr, Virgil,2019,A culture of rent seeking,Public Choice,Volume 181, pages 101–126, (2019)
Mukhamediyev, Bulat , Temerbulatova, Zhansaya , The Impact of Oil Prices on the Global Competitiveness of National Economies, IJEEP ,Vol. 9 No. 6 (2019)
Kamrava, Mehran, 2023,Power and Institutions in Iran, The Sacred Republic: Power and Institutions in Iran, Pages, 1–20, https://doi.org/10.1093/oso/9780197747711.003.0001
Amidian , Hajar,2016, Gazing Upon the Land of Oil Through the Prism of Structure, Elite Action, and Civil Society,Iran’s Struggles for Social Justice,Chapter,First Online: 21 December 2016,pp 29–46
Mahmoudi, Narges, Political Corruption and Its Impact on the Rule of Law: A Comparative Analysis of Countries with Islamic Laws,Tuijin Jishu/Journal of Propulsion Technology, Vol. 44 No. 4 (2023),DOI: https://doi.org/10.52783/tjjpt.v44.i4.2508
Laniran, Temitope J. , Adeleke, Damilola,2024,Does natural resource hinder, taxation capacity and accountability? A case of selected oil abundant developing countries,RESEARCH PAPER,Volume 26, pages 499–520, (2024)
دیوان محاسبات كشور. (1401). گزارش تفریغ بودجه سالانه. دیوان محاسبات كشور.
کاتوزیان، احمد، اقتصاد سیاسی ایران، ترجمه محمد رضا میثمی، تهران، نشر نی، 1372 و Skocpol, Theda. "Rentier state and Shi'a Islam in the Iranian Revolution." Theory and Society 11.3 (1982): 265-283.)
آبراهامیان، یرواند، ایران بین دو انقلاب، ترجمه احمد گل محمدی و محمد ابراهیم فتاحی، تهران، نشر نی، 1377 و Keddie, Nikki R. Roots of revolution: An interpretive history of modern Iran. Yale University Press, 1981.)
