Strategies to create an appropriate structure in Iran manufacturing industries (Based on Linda index and market intervention theory)

Document Type : Original Article

Authors

1 Phd student, Department of Economic, Semnan University, Semnan, Iran

2 Faculty of economic, Management and Administrative science, Semnan University, Semnan, Iran

3 Department of Economic, Shahrood University of Technology, Shahrood, Iran

Abstract

The purpose of this article is to present strategies to create a suitable market structure in Iranian manufacturing industries within the framework of contextual theory, by examining structure by calculating and analyzing market share and using the Linda Index. Based on it, the distribution of market share, the intensity of competition and the process of government intervention in market management are determined. On the other hand, competitive performance as favorable economic conditions as well a monopoly that results in market constraints and the dominance of one or more firms is called an unfavorable situation. Calculation of Linda index at the level of two-digit codes (ISIC) and the period 1395-1385, shows that some Iranian manufacturing industries in terms of competition, more favorable than other industries and some others, are far from competitive and tend to monopolize the share of state-owned enterprises in some industries, or because of government support has led to an unfair distribution of market share. So that private enterprises have not been able to compete with state-owned companies. Based on the theory as a model for qualitative analysis of structural phenomena and strategy determination, knowledge management processes, support for R&D units of small enterprises, it has been used to reduce the height of entering the market and industry. Also, change management is emphasized in order to promote innovation in accordance with the conditions, market management based on industry planning and in the interaction between the government and the market, as effective strategies in creating an appropriate market structure.

Keywords

References

Barro، R. J. (1990). Government spending in a simple model of endogeneous growth. Journal of political economy، 98(5، Part 2)، S103-S125.
Bukvic، R. (2017). Concentration and Competition in Serbian Banking Sector. The Scientific Journal of Cahul State University" Bogdan Petriceicu Hasdeu": Economic and Engineering Studies(2)، 4-12.
Carriero، N.، & Gelernter، D. (1989). Linda in context. Communications of the ACM، 32(4)، 444-458.
Choo، Y. Y.، Corbo، L.، & Wang، K. (2018). Joint impact of airline market structure and airport ownership on airport market power and profit margin. Transport Policy، 72، 67-78.
Dowding، K. M.، & Taylor، B. R. (2020). Economic perspectives on government: Springer.
Gan، L. L.، & Frederick، J. R. (2011). Medical tourism in Singapore: A structure-conduct-performance analysis. Journal of Asia-Pacific Business، 12(2)، 141-170.
Ipek، E.، & Ipek، O. (2018). Market structure of the Turkish pharmaceutical industry. Business and Economics Research Journal، 9(3)، 449-462.
Karabulut، Ş. (2019). Market Failure and Government Failure. Paper presented at the International Conference on Emprical Economics and Social Science (ICEESS’ 19)، Turkey.
Maksimov، A. V.، Dengov، V. V.، & Tulyakova، I. R. (2016). Globalization in the Field of Food Retail St. Petersburg: Concentration and Competition. Paper presented at the 16th International Scientific Conference on Globalization and its Socio-Economic Consequences.
Mia، M. A. (2018). Evolution of market concentration and competition in the microfinance industry of Bangladesh. International Journal of Social Economics.
Piesch، W.، & Schmidt، I. (1983). The suitability of concentration measures for EEC competition policy. Studies: Competition-Approximation of Legislation Series 35.
Shy، O. (1995). Industrial organization: theory and applications: MIT press.
Stigler، G. (2006). Competition، The New Palgrave Dictionary of Economics.
Stiglitz، J. E.، & Rosengard، J. K. (2015). Economics of the public sector: Fourth international student edition: WW Norton & Company.
Tirole، J. (1988). The theory of industrial organization: MIT press

Files

Share

How to cite

Statistics