Determining Strategic Industries in the Iranian Economy

Manufacturing sector has an outstanding potential in production, employment, value added and income. This sector also procures machinery and equipment for other sectors. Since a large part of the government investments are allocated to the manufacturing sector; it needs special consideration for the optimum allocation of the limited resources. In this study we have surveyed various strategies covering import substitution, export promotion, basic export and balanced and unbalanced growth. With regard to Iran’s situation and characteristics such as resources, specialties, infrastructure, the unbalanced growth pattern is recommended. The input-output backward and forward linkages have been investigated via the input-output table. Different techniques have been used such as principal component, factor analysis and numerical taxonomy.