Unproductive Activities and Their Affecting Factors in Iran

Purpose- Unproductive activities refer to economic activities which do not have a positive effect on GDP, but have high profit and returns, which can eliminate productive activities. This is a phenomenon that has occurred in Iran in the last three decades. The aim of the present study is to analyze the factors causing and spreading unproductive activities using Fumanat area as the context.Design/methodology/approach- The study area is Fumanat, one of the historical regions of Gilan. The type of research is qualitative. In order to collect the required data and information, we conducted the various steps: First, using secondary data, the study illustrated changes in the share of employment in the economic sectors of the region, changes in the area of agricultural land use, as well as changes in the level of built land use. Second, conducting interviews with different business owners of each household, the common activities of households were studied to determine the evolution of productive activities in the sample villages. The common activities of households and among them unproductive activities were identified by inductive method. In order to understand the factors affecting the creation and expansion of unproductive activities, the qualitative approach of grounded theory was used.Findings- The study indicates that in the mountain zone, ۳۹.۱ percent of jobs, in the foothill zone, ۳۲.۳ percent of jobs, in the plain zone, ۴۱.۹ percent of jobs and in the coastal zone, ۳۰.۲ percent of jobs, can be categorized as unproductive activities. The existence of uncertainty, lack of support for productive activities, the property rights issue, inadequate privatization and dysfunctional institution system affect the expansion of unproductive activities in the region.Originality/value- Various studies have examined productive and unproductive sides in economic endeavors, most of which considered them with a macro point of view. The present study tries to investigate the contextually of the factors underlying these changes in a rural space and community.