Globalization and production specialization have expanded global value chains, boosting efficiency and growth. However, recent geopolitical and economic disruptions have increased the importance of regional value chains. Developing countries must leverage these shifts to strengthen their integration and enhance economic development.
International and Regional Experiences: Opportunities and Requirements
Understanding regional value chains requires examining successful country experiences and trade agreements;
- Successful Experiences in Regional Value Chain Integration
Indonesia, Malaysia, and Thailand strengthened regional value chains through industrial coordination, foreign investment, and trade facilitation, moving toward higher-value production.
- Selected Economic and Trade Agreements
Effective regional value chains require strong trade agreements, institutional cooperation, infrastructure, and production capacity. ASEAN offers valuable lessons, while other blocs face integration challenges.
- Trade Tariffs and Regional Economic Integration
Tariff reductions support regional integration, but success also depends on reducing non-tariff barriers, improving infrastructure, and enhancing competitiveness. A smart tariff strategy can help Iran integrate into regional value chains.
Policy Pathways for Iran
- Trade with Neighboring Countries: A Gateway to Regional Value Chains
Iran can expand its role in regional value chains by diversifying production and strengthening trade with neighboring markets.
- Transition from Informal to Formal Currency Arrangements
Formal regional payment systems can reduce costs, improve transparency, and ease trade constraints.
- Development Corridors as Instruments of Regional Connectivity
Modern transport and logistics corridors can boost trade, investment, and regional integration.
- Consider Effective Strategies to Enhance Iran’s Position in Regional Value Chains
Closer cooperation with major Asian economies can strengthen Iran’s participation in regional value chains.
- Redefining the Regional Trade Strategy
Iran should prioritize value-chain integration in competitive industries rather than focusing solely on exports.
- Developing Formal Regional Currency Mechanisms
Regional settlement systems can reduce reliance on third-country currencies and support trade growth.
- Strengthening Production–Value Corridors
Industrial clusters and logistics hubs can transform transit routes into engines of regional economic development.
This study is conducted at Technology Studies Institute and Iran Think Tank for Export Development (ITED) by Mohammad-Ali Mesgari, Amir Zakeri and Mohammad-Sadegh Saremi in 2026.
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