Quarterly Journal of Political
Research in Islamic World

It is obvious that the economic performance and political structure of society have close and mutual relationship so that the success and sustainability of any political structure would be dependent on the economic performance. On the other hand, the economic performance is dependent on the nature and quality of political structure both in the formulation of economic policies and its implementation. The country performance in international business and trading balance as an indicator of economic performance is affected by the quality of the political structure of the society. This paper examines the impact of political instability on international business in Iran using autoregressive and distributed lag (ARDL) Model. The results of the model show that political stability has a positive effect on the country's trade balance and international business, in a way that with one percent increase in the quality of political structure and political stability, balance of trade increases 11 percent. In addition, real effective exchange rate and economic growth have also positive and significant effect on the trade balance of the country.