Authors

• Mohammad Bagher Beheshty ¹
• Naser Senobar ²
• Hassan Farzane Kojabab ³

¹ Associate Professor, Department of Economics, Tabriz University

² Assistant Professor of Economics, University of Tabriz

³ Master of Economic Development and Planning

Abstract

This study analyse the determinants of entry and exit of Iran’s manufacturing industries defined at 4-digit ISIC level for the period 1995-2003. It employs a structure-conduct- performance model as well as macroeconomic factors to explain determinant factors of net entry. The research uses a panel data model to carry out the estimation. Findings of this study show that entry barriers and macro economic factors are important in explaining net entry movements. Entry barriers include high MES, capital requirement and barriers like intangible assets. Moreover, growth and profitability of industry absorb entrants to the industry.
 

Keywords

• competition
• entry
• entry-exit of firms
• industrial structure
• Iran’s industry