Abstract:
This study aims at comparing the economic relations of Japan with Iran and with Saudi Arabia. The comparison of these two relations is important as Iran and Saudi Arabia are leading exporters and Japan is a large importer of crude oil in the world. After a brief overview of the history of these two relations, the criteria of trade complementarity, i.e. Trade Potential Naive Assessment, Cosine Measure and Drysdale's Index are taken into account. Further, FDI in Iran and Saudi Arabia are studied based on the indicators of FDI value, FDI contribution to GDP, and the International FDI Performance Index. These indices indicate that in spite of the long aged Japan-Iran economic relations, these relations have been reduced in recent years both in trade and in foreign investment. Since, Japan needs to maintain dynamic and sustainable relations with its two main energy-providing countries; it has recently made direct investments in oil and gas extraction in Saudi Arabia in return for purchasing oil from this country. Comparatively, considering the high trading capacity between Iran and Japan, it would be time for the two countries to negotiate on the export of crude oil to Japan in return for expanding economic ties in joint ventures such as co-participating in the construction of extraction platforms and refineries in Iran, as well as gas stations in Japan and selling petroleum products on the Japanese (and East Asia) market.
Machine summary:
drysdale measure, export and import potentials, FDI Performance Index, Japan-Iran trade relations, Japan- Saudi Arabia relations, trade complementarity JEL: F13, F21, G24, N75, R11 Journal of World Sociopolitical Studies| Vol. 2| No. 2| April 2018| pp.
1044 288 {مراجعه شود به فایل جدول الحاقی} Nahid Pourrostami, Zahra Kalhor and Sadra Golshan Introduction The study of Japan’s economic relations with Iran and Saudi Arabia is of great importance as, according to U.
For instance, according to the reports of the International Trade Center (ITC, 2017) in 2015, the main export from both Iran and Saudi Arabia to Japan has been crude oil and the major import to both countries from Japan has been machinery.
Economic Relations of Japan with Iran and Saudi Arabia -A Comparative Study In the recent years, Iran has not achieved much in attracting direct foreign investment.
This is why the Economic Relations of Japan with Iran and Saudi Arabia -A Comparative Study identification, measurement and assessment of trade potential are of most importance.
This signifies that, compared with Iran, Saudi Arabia has higher trade potential in importing goods from Japan due to a stronger similarity of its importing patterns to that of Japan’s export.
Cosine measure between Japan’s export and Iran and Saudi Arabia’s import from 2001 to 2015 {مراجعه شود به فایل جدول الحاقی} Source: Calculations by Authors, based on (ITC, 2017) data Economic Relations of Japan with Iran and Saudi Arabia -A Comparative Study {مراجعه شود به فایل جدول الحاقی} {مراجعه شود به فایل جدول الحاقی} Figure 4.