An Investigation on the Relationship between Market Structure and Profitability; The Case of Iranian Manufacturing Industries

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Abstract

This study investigates the relationship between market structure and profitability in the Iranian manufacturing industries. In this study, raw data based on international standard industrial classification (at four digit code) has been used. Fixed effects panel estimation method (based on diagnostic test results) has been chosen for empirical investigation. The result of the study confirms the validity of structural approach. The results indicate that most of structural variables have significant effect on the average rate of profitability in the selected industries. The results also show the fact that export sale ratio has no significant effect on the average rate of profitability of firms in the selected industries.
JEL Classification: L11, L60, L21, D42, C33

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