Diversifying the export of Iranian pharmaceutical products by applying network science and product space theory

Subject Areas : Industrial Management

Anvar  Khosravi ¹ (Department of Economic, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.)
saeed  Daie-Karimzadeh ² (Department of Economic, Isfshan (Khorasgan) Branch,, Islamic Azad University, Isfahan, Iran)
Behrooz  Shahmoradi ³ (financing and economics National Research Institute for Science Policy (NRISP), Tehran, Iran)
Heirsh  Soltanpanah ⁴ (Management Department, Faculty of Humanities, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran)

Received: 2021-12-19 Accepted : 2022-05-26 Published : 2022-07-22

Keywords: Leader Countries, Facilitation, Pharmaceutical Industry, Harmonized System, identification,

Abstract :

Diversification and structural changes in economies play an important role in the development process of countries. However, the importance of diversity in the manufacture and export of pharmaceutical products has doubled in the last two years due to the direct link between human health and COVID-19 pandemics. One of the practical approaches in this field is the theory of new structuralists, with which it is possible to identify revealed and implied comparative advantages and propose practical solutions to achieve economic diversification. Using product space theory, network science, and countries' export data (2014-2018- five years’ period), it was found that out of 29 pharmaceutical product codes based on six-digit HS codes, Iran has a revealed comparative advantage in export of 4 products, 7 out of 29 product codes have implied comparative advantage and the remaining 18 product codes have no activation potential or zero advantage for export. Based on the combined strategy of the Borda and Copeland methods, the priority of 7 products with implied comparative advantage was determined and the leading countries of each product were determined so that Iran can follow these countries.

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