The long-run and short-run impact of the domestic and global naphtha prices on the sales of the naphtha based public petrochemical companies in Iran

The importance of non-oil exportation in Iran rise recently due to the US sanctions against Iran. The petrochemical industry is the leader of the non-oil exporter in Iran. In this study, the impact of global and domestic naphtha prices on the sales of the petrochemical companies in Iran is evaluated. ARDL (1, 1, 1) is chosen as the best modelling method. There is not any meaningful relationships between the parameters in short-run. Nevertheless, in the long-run, both the global and domestic naphtha prices influence the sales of the petrochemical companies positively. However, the effect of global naphtha prices is more substantial than domestic prices. A one percent increase in the global and domestic naphtha prices in the long-run causes an improvement in the sales by 0.75 and 0.11 percent respectively in ARDL model.

The long-run and short-run impact of the domestic and global naphtha prices on the sales of the naphtha based public petrochemical companies in Iran Keywords:

Petrochemical Industry , Naphtha , ARDL , Short-run , Long-run