Iranian Journal of Trade Studies

Iranian Journal of Trade Studies

The Moderating Role of Logistic Infrastructure on the Relationship Between Domestic Investment and Export Performance in Iran’s Special Economic Zones

Document Type : Research Paper

Authors
sholeh bagheri 1
Mahdieh Bayat 2
1 Faculty member of khatam university
2 Expert at Khatam University
10.22034/ijts.2026.2088972.4270
Abstract
The purpose of this study is to examine the effect of domestic investment on the export performance of Iran’s Special Economic Zones (SEZs), with particular emphasis on the moderating role of logistics infrastructure. To this end, a balanced panel dataset covering 32 Special Economic Zones during the period 2014-2024 was employed, and the research model was estimated using a fixed-effects panel data approach. Logistics infrastructure is measured as a composite index comprising port capacity, rail accessibility, road network, and warehousing capacity. Its moderating effect is examined through interaction terms between domestic investment denominated in Iranian rials and foreign currencies and the logistics infrastructure index. The empirical findings indicate that domestic investment denominated in both Iranian rials and foreign currencies exerts negative and statistically significant effects on exports in the absence of adequate logistics infrastructure. However, the interaction terms between domestic investment and logistics infrastructure are positive and statistically significant, with estimated coefficients of 97.98 and 32.41, respectively. These findings suggest that logistics infrastructure is a critical prerequisite for transforming domestic investment into effective export capacity in Special Economic Zones. In addition, imports (coefficient = 0.72), average firm size (coefficient = 1.39), and the real exchange rate (coefficient = 0.0047) all have positive and statistically significant effects on exports. The adjusted R² is 0.83, indicating that the estimated model has strong explanatory power in explaining variations in exports across Special Economic Zones. Overall, the results demonstrate that increasing domestic investment without the simultaneous development of logistics infrastructure does not necessarily improve export performance. Therefore, export-oriented policies in Special Economic Zones should promote the simultaneous development and integration of investment, transportation, warehousing, and logistics connectivity to enhance export competitiveness.
Keywords
Special Economic Zones
Export Performance
Domestic Investment
Logistics Infrastructure
Panel Data
Subjects
 
-          Adeoti, J. O., Popoola, O. A., & Afolabi, J. A. (2025). Special economic zone incentives, innovation and export performance of firms in Nigeria. International Journal of Innovation Science. https://doi.org/10.1108/IJIS-07-2024-0186
-          Adinehvand, D., Hamidi, G., & Babaei, K. (2025). Evaluation of the performance indicators of Payam Special Economic Zone in comparison with other special economic zones in Iran. In Proceedings of the 11th International Conference on Management, Accounting, Banking and Economics of Iran, Mashhad, Iran. [In Persian]
-          Alipour, M. M., Younesi, M., & Farzaneh, R. (2025). Analysis of the role of logistics and infrastructure in international trade development with an executive management approach (Case study: Northern Ports of Iran). In Proceedings of the 13th International Conference on Management, Accounting and Economics in Sustainable Development. [In Persian]
-          Anderson, J. E., & van Wincoop, E. (2004). Trade costs. Journal of Economic Literature, 42(3), 691-751. https://doi.org/10.1257/0022051042177649
-          Arvis, J.-F., Saslavsky, D., Ojala, L., Shepherd, B., Busch, C., Raj, A., & Naula, T. (2018). Connecting to compete 2018: Trade logistics in the global economy. World Bank.
-          Bagherian Kasgari, B. (2023). The impact of trade logistics on Iran’s bilateral industrial exports: A gravity model approach. Business Research Journal, 106, 105-130. [In Persian]
-          Baltagi, B. H. (2015). Panel data econometrics: Theory and applications. Journal of Econometric Methods, 4(2), 145-146. https://doi.org/10.1515/jem-2014-0015
-          Baltagi, B. H. (2019). Econometric Analysis of Panel Data (5th ed.). Wiley.
-          Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173
-          Barro, R. J., & Sala-i-Martin, X. (2004). Economic Growth (2nd ed.). MIT Press.
-          Farole, T. (2011). Special Economic Zones in Africa: Comparing Performance and Learning from Global Experience. World Bank.
-          Görg, H., & Mulyukova, A. (2024). Place-based policies and firm performance: Evidence from Special Economic Zones in India. European Economic Review, 165, 104752. https://doi.org/10.1016/j.euroecorev.2024.104752
-          Islamic Republic of Iran Customs Administration. (2024). Annual statistics of Iran’s exports and imports. Tehran: Islamic Republic of Iran Customs Administration. [In Persian]
-          Limão, N., & Venables, A. J. (2001). Infrastructure, geographical disadvantage, transport costs, and trade. World Bank Economic Review, 15(3), 451-479. https://doi.org/10.1093/wber/15.3.451
-          Moberg, L. (2015). The political economy of special economic zones. Journal of Institutional Economics, 11(1), 167-190. https://doi.org/10.1017/S1744137414000241
-          Portugal-Perez, A., & Wilson, J. S. (2012). Export performance and trade facilitation reform: Hard and soft infrastructure. World Development, 40(7), 1295-1307. https://doi.org/10.1016/j.worlddev.2011.12.001
-          Sam Deliri, M. (2025). Investigating the role of hinterland factors on port efficiency. In Proceedings of the 9th National Conference on Management and Tourism Industry, Tehran, Iran. [In Persian]
-          Schrank, A. (2008). Export processing zones in the Dominican Republic: Schools or stopgaps? World Development, 36(8), 1381-1397. https://doi.org/10.1016/j.worlddev.2007.06.017
-          Secretariat of the Supreme Council of Free Trade-Industrial and Special Economic Zones. (2024). Annual performance report of Iran’s Free Trade-Industrial and Special Economic Zones. Tehran: Secretariat of the Supreme Council of Free Trade-Industrial and Special Economic Zones. [In Persian]
-          Thu, H. V. T., Thu, H. T. T., Huyen, T. V. T., & Nham, T. P. (2026). The impact of logistics performance on agricultural export values among ASEAN countries: A gravity model approach. International Journal of Asian Business and Information Management, 17(1), 1-18. https://doi.org/10.4018/IJABIM.398840
-          UNCTAD. (2020). World Investment Report 2020: International Production Beyond the Pandemic. United Nations Conference on Trade and Development.
-          UNIDO. (2020). Industrial Development Report 2020: Industrializing in the Digital Age. United Nations Industrial Development Organization.
-          Wilson, J. S., Mann, C. L., & Otsuki, T. (2007). Assessing the benefits of trade facilitation: A global perspective. The World Economy, 30(1), 19-42. https://doi.org/10.1111/j.1467-9701.2007.01027.x
-          Zeng, D. Z. (2015). Global experiences with special economic zones: Focus on China and Africa (Policy Research Working Paper No. 7240). World Bank.
 

  • Receive Date 17 May 2026
  • Revise Date 23 June 2026
  • Accept Date 01 July 2026