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Analysis of Scale-Based Growth Capacities
in Iran's Manufacturing Sector
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Ali Ajdari *   , Mohamad taghi Fayazi |
| Islamic Parliament Research Center , a.a.ajdari@gmail.com |
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Abstract: (74 Views) |
| The main goal of this research is to evaluate and analyze the condition of economies of scale in Iran's manufacturing sector and examine its developments using the econometric methodology with the Translog cost function approach.The findings of this research show that Iran's industries have not yet used the benefits of their economies of scale during the past two decades, and from this point of view, they still have small scales. The ratio of added value to the number of enterprises and the ratio of real investment to the number of enterprises as indicators of the scale of production in the 1390s compared to the 1380s has become smaller. In other words, the scale of production in Iran's manufacturing sector has decreased during the last decade, and this is a confirmation of a long-term stagnation in Iran's industrial sector. Also, the results of the investigation at the level of two-digit ISIC codes also shows that the industries of food products, production of tobacco and tobacco products, production of clothing, production of leather and related products, production of other means of transportation, and production of furniture in They have moved to reduce the scale. On the other hand, the industries of production of various types of beverages, production of paper and paper products, printing and reproduction of recorded media, production of chemicals and chemical products, and production of drugs and chemical and herbal medicinal products have clearly moved towards increasing scales. The most important policy recommendation of this study is predicting the price and access to raw materials, access to financial resources, reforming the ownership and management structure of large industrial companies by moving towards the private sector and especially market development for domestic industrial products and the possibility of accessing markets. The external goal is to increase industrial exports along with increasing competitiveness in global markets |
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| Keywords: Manufacturing Sector, Industrial Growth, Elasticity of Scale, Translog Cost Function |
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Full-Text [PDF 980 kb]
(49 Downloads)
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Type of Study: Research |
Subject:
Special
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