Author
Assistant Professor, Mazandaran University
Abstract
The purpose of this paper is to estimate and study industry specific determinants of Iran’s intra industry trade (IIT) types. To this end, we use the data on foreign trade and industry specific for 16305 Iranian manufacturing firms in 2002 at the 4-digit aggregation level of ISIC classification. Results imply that dominant market structure in intra industry trade types of Iranian manufacturing industry is an imperfect competition. Specifically, economies of scale, low concentration and product differentiation are important determinants of Iran’s manufacturing industry IIT types. Furthermore, the research and development expenditures and foreign direct investment have significant and positive effects on Iran’s IIT. Industry specific characteristics such as economies of scale and product differentiation, R&D and FDI are important factors in promoting IIT in Iran.
Keywords
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