ANALYSIS OF DIMENSIONS AND COMPONENTS OF GOVERNMENT INTERVENTION IN MARKET REGULATION (COMPARATIVE STUDY OF IRAN AND THE UNITED ARAB EMIRATES)

Abstract

Government intervention in the economy, especially in developing countries, has profound effects on economic growth, income distribution, and market stability that must be carefully examined. Therefore, in this study, using an analytical-descriptive approach whose data was collected through two methods: library research and collecting the opinions of academic experts from Iran and the United Arab Emirates, an attempt has been made to compare and analyze the tools and methods of government intervention and regulation in the economies of Iran and the United Arab Emirates, to identify the points of difference and commonality between these two rentier states. The results of the study show that both countries, considering their specific conditions, have adopted different approaches to government intervention in the economy and have therefore obtained different results. Iran has more intervention in the economy with an ideological approach and an emphasis on social justice, while the UAE has adopted a market-oriented approach based on free competition. Another part of the research results shows that despite the success of the UAE in the economic and welfare field, which has been achieved in the shadow of attracting foreign investment and expanding the private sector, diversifying economic activities and incomes, and pursuing a market economy; this country also faces certain challenges. The results of examining the opinions of experts also show that among the 10 important indicators in this regard, the prioritization of good regulatory criteria in the UAE is: attracting foreign investment, transparency in decision-making, and effectiveness and efficiency, while in Iran, the importance of these priorities from the experts' point of view is: effectiveness and efficiency, attracting foreign investment, and public participation, respectively. Therefore, despite the initial similarities in the priorities of important regulatory indicators in each country, this issue is influenced by various factors, including economic structure, level of development, international conditions, and domestic needs, and when designing successful regulatory policies, it is necessary to pay comprehensive and comprehensive attention to these factors.