خشایار ابراهیمیان

The globalization of the economy has provided a platform for the emergence of new theories in international trade. A key distinction between traditional and modern theories is the highlighted role and importance of intermediate goods in modern trade theories. Considering intermediate goods offers at least three advantages: first, it allows for the decomposition of value-added in gross exports; second, it can serve as a suitable measure for assessing each economy's contribution to the global economy; third, it can address a fundamental shortcoming of existing accounting systems regarding the value-added created.

The focus of this thesis is on calculating the domestic value-added (DVA) in gross exports and the employment generated from it, using two methods: hypothetical subtraction and conventional methods. The hypothetical subtraction method has three main steps, ensuring the equality of the total domestic value-added and vertical specialization relative to gross exports at the macroeconomic level, though it is ineffective at the level of economic activities. In contrast, the hypothetical subtraction method guarantees both.

To achieve this goal, two questions are posed: First, what are the shares of domestic value-added (DVA) and vertical specialization (VS) at the macro level and by economic sectors using the two mentioned methods? Second, how much employment is generated from gross exports using both hypothetical subtraction and conventional methods?

The findings of the research are as follows: The shares of DVA and VS at the macro level are equal in both methods, at ۰.۹۴ and ۰.۰۶, respectively. However, at the sectoral level, these ratios differ; results from the hypothetical subtraction method indicate that the shares of DVA and VS relative to gross exports are smaller than one in some sectors (۳۶ activities) and larger than one in others (۵۳ activities), while the conventional method guarantees the equality of total domestic value-added and vertical specialization relative to gross exports across economic sectors.

Gross exports of the Iranian economy create ۲,۹۲۳,۳۳۷ direct and indirect jobs, with the industrial production sector (manufacturing) accounting for the highest share of employment.