Iranian Journal of Economic Research

Determinants of Net Entry and Exit in Iran’s Manufacturing Industries

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

  • Receive Date 03 May 2016
  • First Publish Date 03 May 2016

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