Mahdi Rostami - Assistant Professor, Department of Energy Economics and Management, Tehran Faculty of Petroleum, Petroleum University of Technology, Tehran, Iran
Tarokh Bahrdo - M.Sc. Student in Oil & Gas Economics, Energy Economics & Management Department, Petroleum Faculty of Tehran, Petroleum University of Technology, Tehran, Iran
Nosratollah Abbas Zadeh - Assistant Professor, Department of Energy Economics, Faculty of Natural Resources and Environment, Islamic Azad University Science and Research Branch, Tehran, 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 (۱, ۱, ۱) 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 ۰.۷۵ and ۰.۱۱ percent respectively in ARDL model.

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