The consequences of the world economic crisis of 1929 on the production and export of Iranian carpets: 1929 to 1941

The economic crisis of 1929 was one of the most important economic crises in the twentieth century, beginning in the United States and spreading immediately to other countries. As a result of this crisis, extensive changes in economic and social planning occurred in Iran and most countries of the world. This study by using the archival documents and written sources by analytical-descriptive method, try to answer this question: what were the consequences of the economic crisis of 1929 on the Iranian carpet weaving industry? The hypothesis of this study is that the world economic crisis was a major variable in the direction of Iran's economic planning, including the establishment of a carpet joint stock company. The research findings show that Iranian carpet exports fell sharply due to the economic crisis in the US market and trade competitions. Due to Iran's foreign trade monopoly program and the formation of monopoly companies, carpet exports had some fluctuations. However, the government sought to overcome to foreign trade by monopolizing foreign trade and setup a joint-stock company, but despite the growth of carpet exports in 1931 and 1932, its production never reached the pre-crisis position of the global economy. The formation of Carpet Joint Stock Company could not improve its position, as a result, this caused widespread unemployment in parts of Iran that were heavily dependent on the production and export of carpets.