|dc.identifier.citation||Nassehi, R, 2016: Studying rentier states over time: the political economy of macroeconomic policymaking in pre- Revolutionary Iran. Queen Mary University of London.||en_US
|dc.description.abstract||This thesis attempts to explain why the Pahlavi regime chose imprudent macroeconomic
policies in response to the 1973 oil boom. It argues that the macroeconomic policies that
were selected by this regime after 1973 were shaped by the economic policies that it had
been pursuing in the 1960s.
In 1963, the Pahlavi regime initiated the policy of import substitution industrialisation
(ISI). The economic success of this policy in the 1960s generated spillover effects on
the ideology, geopolitical standing and class coalition of the Pahlavi state. As this state
moved from the first phase of ISI (1963-1967) to the second stage (1968-1972), its
developmentalist ideology became stronger, its geopolitical standing in the Gulf was
elevated and its economic alliance with the industrial elite grew deeper. A combination
of these spillover effects generated a self-reinforcing process, whereby the political elite
constantly sought to maximise oil prices in OPEC and use the resulting oil revenues
domestically to push the ISI process deeper towards heavy and intermediate industries.
Importantly however, this self-reinforcing process of ISI deepening set the stage for
imprudent macroeconomic policymaking at the time of the 1973 oil boom. After the
boom, the elite accelerated ISI to an extreme through a massive fiscal and monetary
expansion and refused to reverse this policy despite its macroeconomic consequences.
This indicates that it was the interaction of the 1973 oil boom with the self-reinforcing
process of ISI deepening (which had been underway since 1963) that led to poor
macroeconomic policymaking in the 1970s.
Theoretically, this case study shows that, once chosen, an economic policy can possibly
become self-reinforcing over time (by generating spillover effects) and shape future
policy choices. This thesis, therefore, introduces the element of path dependency and
dynamic analysis into the study of rentier states.||en_US
|dc.publisher||Queen Mary University of London||en_US
|dc.subject||Business and Management||en_US
|dc.title||Studying rentier states over time: the political economy of macroeconomic policymaking in pre- Revolutionary Iran||en_US
|dc.rights.holder||The copyright of this thesis rests with the author and no quotation from it or information derived from it may be published without the prior written consent of the author||