Analyzing the Privatization of Downstream Oil and Gas Industries in Iran from the Perspective of Ostrom's Institutional Analysis and Development Framework

Document Type : Research Paper

Authors

1 Ph.D. Candidate in Economics, Imam Sadiq university

2 Professor of Economics, Imam Sadiq university

Abstract

This research has investigated the question, "What are the effective exogenous factors, actors and consequences of non-governmentalization of downstream oil&gas industries?" In the first step, questions according to the IAD framework were extracted by studying documents, previous researches, news and economic data. In this step, 15 elites and industrial activists were selected in a non-random way and based on the verification of elite status in the petrochemical industry and were subjected to semi-structured interviews. In the second step, the propositions extracted from the interviews were analyzed using thematic analysis method, with a comparative approach and based on the IAD analytical framework. Exogenous factors are divided into three categories; The first category is the characteristics of the community, which include: the weakness of the public's investment approach, the biased selection of political actors, and the desire for justice. The material/biological conditions are the second exogenous factor, which consists of: defects in the capital market and the banking sector, the necessity of the presence of non-governmental public institutions, deficiencies in the real private sector, legal deficiencies and macroeconomic policies, deficiencies in the macroeconomic sector, economic sanctions, and rate regulation deficiencies. food. The third exogenous factor is the rules. In the field of actors, 21 institutions were identified, which operate in three levels of establishment, policy and operation, and each of them performs specific tasks of macro-policy, sectoral and direct policy, food supply, management and development, etc. The derived results show that all economic goals in private downstream industries have not been achieved

Keywords

Main Subjects


  1. Abdi Jafari, H, Taslimi, M. S., Faqihi, A. H., & Sheikh Zadeh, M. (2011). Theme analysis and theme network: a simple and efficient method to explain patterns in qualitative data. Strategic Management Thought (Management Thought), 5(2 (series 10)), 151-198 (In Persian).
  2. Archive of approvals of the Privatization Organization's Allocation Board. (2022). Retrieved on October 13, 2022, from https://ipo.ir/-Arshio-Mosovat-Hiat-Vazhedi---Salhai-Qebul (In Persian).
  3. Atash souz, A., Faizi, K., Kezazi, A., & Olfat, L. (2015). A model for risk relationships in the supply chain of the petrochemical industry in Iran. Industrial Management (Tehran University), 18(7), 405-424. (In Persian)
  4. Azar, A., Qolipour, R., Alwani, S. M., Komijani, A., & Mohammadi, E. (2011). Designing a comprehensive model of privatization and transfer of state-owned enterprises in Iran with a policy-making approach: petrochemical industry. Management researches in Iran, 15(4 (serial 73)), 29-49 (In Persian).
  5. Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative research in psychology, 3(2), 77-101.‏
  6. Brown, J. D., Earle, J. S., Shpak, S., & Vakhitov, V. (2019). Is privatization working in Ukraine? New estimates from comprehensive manufacturing firm data, 1989–2013. Comparative Economic Studies, 61, 1-35.‏
  7. Constitutional document. Constitution. (1989). (In Persian)
  8. Faridzad, A., Banoui, A. A., & Guderzi, M. (2021). Measuring the vulnerability of Iran's economic sectors due to the crude oil export embargo: calculating a composite index based on the data-output model. Quarterly Journal of Applied Economic Theories, 8(2), 35-74 (In Persian).
  9. Fouladi, S. (2022). Evaluating the barriers and limitations of the business environment in the petrochemical industry and its improvement solutions in order to complete the value-added chain of oil based on the 15th point of resistance economy. Master's thesis, Imam Sadiq University (peace be upon him) (In Persian).
  10. General policies of Article 44 of the Constitution. (2005) (In Persian).
  11. Holloway, I., & Todres, L. (2003). The status of method: flexibility, consistency and coherence. Qualitative research, 3(3), 345-357.‏
  12. Jahangirfard, M., Sahranavard, A. R., Mahdizadeh Ashrafi, A., & Mujibi, T. (2022). Designing a sustainable human resources regional management model in Iran's petrochemical industry with a future research approach. Geography (Regional Planning), 54(12), 365-387 (In Persian).
  13. La'l Khazri, H., & Shirzor Aliabadi, Z. (2022). The role of the government in the exchange of income inequality and economic growth: Bayesian vector autoregression approach. Quarterly Journal of Applied Economic Theories, 9(4), 161-192 (In Persian).
  14. Mackenzie Institute. (2016). Iran: One trillion dollar growth opportunity? in the field of petrochemical industry (No. 31015104). Tehran: Islamic Council Research Center (In Persian).
  15. Laguna, N. M. (2004). Oil policies and privatization strategies in Mexico: implications for the petrochemical sector and its production spaces. Energy Policy, 32(18), 2035-2047.‏
  16. Mashayekhi Nizamabad, E., & Alem Tabriz, A. (2016). The effect of upstream and downstream supply chain integration on performance and quality program. Industrial Management Perspectives, 24(6), 37-57 (In Persian).
  17. Mohammadpour Zandi, M. E., & Turkman Ahmadi, M. (2017). The role of privatization implementation in Iran's economy on stock market deepening (with emphasis on liquidity ratio). Financial Engineering and Securities Management, 35(9), 51-75 (In Persian).
  18. Nasiri, F., Aghabeigi, A., & Mirjalili, F. (2017). Value chain development experience in the petrochemical industry; A case study of Singapore (No. 15631). Tehran: Islamic Council Research Center (In Persian).
  19. Nasirzadeh, H., Amin-Tahmasbi, H., & Khalili, H. A. (2021). Investment analysis in privatization of National Iranian Drilling Company using systems dynamics and BWM technique. Energy Policy, 148, 111963.‏
  20. National Company of Petrochemical Industries of Iran. (2019). Iranian Petrochemical Industry Yearbook (2018). Tehran - Iran: National Company of Petrochemical Industries of Iran (In Persian).
  21. Obinger, H., Schmitt, C., & Traub, S. (2016). The political economy of privatization in rich democracies. Oxford University Press.‏
  22. Ostrom, E. (1998). A behavioral approach to the rational choice theory of collective action: Presidential address, American Political Science Association, 1997. American political science review, 92(1), 1-22.‏
  23. Ostrom, E. (2009). Understanding institutional diversity. Princeton university press.‏
  24. Ostrom, E. (2006). The value-added of laboratory experiments for the study of institutions and common-pool resources. Journal of Economic Behavior & Organization, 61(2), 149-163.‏
  25. Ostrom, E. (2005). Doing institutional analysis digging deeper than markets and hierarchies. Handbook of new institutional economics, 819-848.‏
  26. Ostrom, E. (2009). Understanding institutional diversity. Princeton university press.‏
  27. Pao, H. W., Wu, H. L., & Pan, W. H. (2008). The road to liberalization: Policy design and implementation of Taiwan’s privatization. International Economics and Economic Policy, 5, 323-344.‏
  28. Pashapour, S., Bozorgi-Amiri, A., Azadeh, A., Ghaderi, S. F., & Keramati, A. (2019). Performance optimization of organizations considering economic resilience factors under uncertainty: A case study of a petrochemical plant. Journal of cleaner production, 231, 1526-1541.‏
  29. Pera, A. (1997). Privatisation, liberalisation and the orientation of regulation. The Privatization of Public Utilities: The Case of Italy, 17-34.‏
  30. Pourahmadi, M.,Mukhtarianpour, M., & Hasanqolipour Yasuri, T. (2018). Pathology of the implementation of privatization policies in Iran. Public Administration (Tehran University), 35(10), 333-356 (In Persian).
  31. Qolipour, H. (2016). Understanding the challenges of the transformation of humanities in the Islamic Republic of Iran based on the institutional approach (Master's thesis). Imam Sadiq University (In Persian).
  32. Rezaei, M. J., Yarahmadi, M., & Salehi, A. H. (2022). Examining the sixth development program based on the economic discourse of the Islamic revolution on rural development; Suggestions for drafting the seventh development program document. Strategic and macro policies, 10(3), 476-507 (In Persian).
  33. Rhea, J. E. (2005). Privatization in the International Patization in the International Petroleum Industroleum Industry: The Interplay: The Interplay between Politics, Economics, and Reliance. Journal of International Law & Policy, 4, 609-640.
  34. Sangbor, M. A., Safi, M. R., Azar, A., & Rabia, M. (2022). Identifying and prioritizing the enablers of sustainable supply chain management in the petrochemical industry with the combined approach of "ultracomposition" and "graph theory and matrix approach". Industrial Management Studies, (64), 1-34 (In Persian).
  35. Sharifzadeh, M. J., & Sarmast Shushtari, M. (2022). Institutional analysis of the establishment of the tax system on the total income of natural persons in Iran (using the framework of development and institutional analysis). Parliament and Strategy, (110), 61-90 (In Persian).
  36. Shokouhi, M. R., Mohtashmpour, R., & Hosseini Mehr, S. H. R. (2019). Examining the challenges of Iran's petrochemical industry in the framework of the general policies of resistance economy. Majlis and Strategy Quarterly, (102), 295-330 (In Persian).
  37. Smajgl, A., Leitch, A., & Lynam, T. (2009). Outback Institutions: An application of the Institutional Analysis and Development (IAD) framework to four case studies in Australia’s outback. DKCRC report, 31.‏
  38. Sayyad Shirkosh, S., Fayez, S., & Faqihi, A. H. (2019). Presenting a model of public and private sector participation in Iran's downstream oil industry. Public Management Research, 50(13), 34-56. (In Persian)
  39. Teyyeb, H. (2019). National export strategy 1400-1404; Petrochemical sector strategy; Relying on Iran's natural resources and industrial strengths to supply world markets. Iran Trade Development Organization (In Persian).
  40. The official website of the central bank. (2022). Central bank data. Central bank of Islamic Republic of Iran (In Persian).
  41. Todo, Y., Inui, T., & Yuan, Y. (2014). Effects of Privatization on Exporting Decisions: Firm-level evidence from Chinese state-owned enterprises. Comparative Economic Studies, 56, 536-555.‏
  42. Vakili fard, H. R., Foroughnejad, H., & Khushnoud, M. (2013). Assessing the behavior of investors in Tehran Stock Exchange with the method of network analysis process. Asset Management and Financing, 2(1), 19-34 (In Persian).
  43. Varahrami, V., Dargah, H., & Biranvand, F. (2018). The effect of privatization on the export performance of Iranian petrochemical companies (case study: polyethylene export). Economics and Modeling (Economics), 9(2), 101-124 (In Persian).
  44. Young, O. R., Berkhout, F., Gallopin, G. C., Janssen, M. A., Ostrom, E., & Van der Leeuw, S. (2006). The globalization of socio-ecological systems: an agenda for scientific research. Global environmental change, 16(3), 304-31