Optimizing the Percentage of Domestic Sector Participation in Joint Ventures in the Iranian Economy (Case Study of the Oil and Gas Industry of Iran)

The main objective of this research is to determine the executive model of the policy of the requirement of the internal contribution to the program of foreign investment in large-scale projects. Since the investment decisions are heavily dependent on the production cost structure, the "cost modeling of systems" (SCM) method has been used to categorize and simplify the cost information in a desirable manner. Implementation of the internal commitment policy is aimed at supporting domestic production and technology transfer, and the deregulation of the entire production process. In order to support domestic production, there are other options, such as subsidy policies for domestic production and tariffs for goods and services. Therefore, in this research, the internal demand policy, in accordance with the principles and requirements governing international trade, applied through the World Trade Organization and other international organizations and institutions, is compared with other common choices. Finally, the proposed model has been developed for the requirement of internal contributions to oil and gas projects. The model has been determined for a gas refinery with a daily refueling capacity of 20 million cubic meters of gross natural gas, and the optimal share of domestic and foreign investment has been identified. In the project, the share of domestic sector is equal to 49.6% and the share of the foreign investor is 6 / 50% estimated. The welfare effects of the internal contribution requirement are also measured and described by comparing this policy with the policy of applying foreign investor's tariffs. The amount of public welfare resulting from the required internal contribution policy in the project under consideration is estimated at $ 220 million.