The Micro and Macro Approach to the Exit of Iranian Industrial Firms

Document Type : Research Paper


1 Assistant Professor of Economics, Yazd University

2 Ph.D. Candidate in Economics, Yazd University

3 Associate Professor of Economics, Yazd University


The micro and macro approach to the exit firms of Iranian industries
The purpose of this study was to investigate the effect of factors affecting the exit firms at three levels of firm, industry, and environments (macro) using the logite panel model for the period of 1975-1393. The results of this study have shown that at the firm level, productivity has a significant effect on the exit of the firm, in other words, with the increase in productivity, the probability of exit from the firm decreases. At the industry level, the rate of entry and the index of concentration have a significant effect on exit, and the increase in the rate of entry will result in an increase in the probability that the exit firm will from the industry. so the structure of the market moves into competition, the probability that a firm will leave the industry will increase. At macro level, economic growth, inflation, concessional facilities and population size had a significant effect on exit. Increasing economic growth, giving more bank loans to the manufacturing sector and increasing the population will reduce the probability of exit, but rising in inflation will help increase exit probability.


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