Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran

The relationship between industrial structure and productivity, particularly when the former influences the latter, is the traditional view that large firms in more concentrated industries have the resources to make R&D investments, bring about technical advances and ultimately raise industrial...

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Main Authors: Mohammadali Feizpour, Mohammadreza Dehghanpour
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2011-06-01
Series:Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī
Subjects:
Online Access:https://joer.atu.ac.ir/article_2584_f97795eab7757f753fb04346dc0308a9.pdf
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author Mohammadali Feizpour
Mohammadreza Dehghanpour
author_facet Mohammadali Feizpour
Mohammadreza Dehghanpour
author_sort Mohammadali Feizpour
collection DOAJ
description The relationship between industrial structure and productivity, particularly when the former influences the latter, is the traditional view that large firms in more concentrated industries have the resources to make R&D investments, bring about technical advances and ultimately raise industrial productivity. On the other hand, small firms in competitive industries may lack the resources to invest in innovation and make productivity gains. The purpose of this paper is to investigate the relationship between industrial structure and labour productivity for manufacturing firms in Iran during the years of the Second Development Plan. Concentration ratio, barriers to entry and minimum efficient scale are considered as measures of industrial structure and labour productivity wich is defined as the ratio of total output to total labour force. The data for empirical analysis consist of 12000 manufacturing firms, aggregated at 23, 60 and 135 of 2, 3 and 4-digit industries respectively. The results suggest that industry structure, measured by minimum efficient scale has a positive and significant effect in the labour productivity. This finding suggests that Iranian manufacturing plants are sub-optimal and it is possible to increase labour productivity by achieving minimum efficient scale.
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spelling doaj.art-a58d48a763b84f5e8cd05fe88e7e672e2023-12-26T07:57:28ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532011-06-01114171952584Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in IranMohammadali Feizpour0Mohammadreza Dehghanpour1The faculty of Economics, Management and Accounting, University of YazdThe Faculty of Imam Javad High Educational InstituteThe relationship between industrial structure and productivity, particularly when the former influences the latter, is the traditional view that large firms in more concentrated industries have the resources to make R&D investments, bring about technical advances and ultimately raise industrial productivity. On the other hand, small firms in competitive industries may lack the resources to invest in innovation and make productivity gains. The purpose of this paper is to investigate the relationship between industrial structure and labour productivity for manufacturing firms in Iran during the years of the Second Development Plan. Concentration ratio, barriers to entry and minimum efficient scale are considered as measures of industrial structure and labour productivity wich is defined as the ratio of total output to total labour force. The data for empirical analysis consist of 12000 manufacturing firms, aggregated at 23, 60 and 135 of 2, 3 and 4-digit industries respectively. The results suggest that industry structure, measured by minimum efficient scale has a positive and significant effect in the labour productivity. This finding suggests that Iranian manufacturing plants are sub-optimal and it is possible to increase labour productivity by achieving minimum efficient scale.https://joer.atu.ac.ir/article_2584_f97795eab7757f753fb04346dc0308a9.pdfindustrial structurelabour productivitymanufacturing industryiransecond development plan
spellingShingle Mohammadali Feizpour
Mohammadreza Dehghanpour
Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran
Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī
industrial structure
labour productivity
manufacturing industry
iran
second development plan
title Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran
title_full Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran
title_fullStr Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran
title_full_unstemmed Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran
title_short Industrial Structure and Labour Productivity Evidences from Manufacturing Industry in Iran
title_sort industrial structure and labour productivity evidences from manufacturing industry in iran
topic industrial structure
labour productivity
manufacturing industry
iran
second development plan
url https://joer.atu.ac.ir/article_2584_f97795eab7757f753fb04346dc0308a9.pdf
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