Volume 15, Issue 3 (2015)                   QJER 2015, 15(3): 175-194 | Back to browse issues page

‎ 20.1001.1.17356768.1394.15.3.4.4

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Khodadad Kashi F, Zarranezhad M, yousefi R. Evaluation of Interaction Effects of Market Concentration, Profitability, R&D and Advertising in Iran’s Manufacturing Sector. QJER 2015; 15 (3) :175-194
URL: http://ecor.modares.ac.ir/article-18-1288-en.html
Evaluation of Interaction Effects of Market Concentration, Profitability, R&D and Advertising in Iran’s Manufacturing Sector
Farhad Khodadad Kashi1 , Mansour Zarranezhad2 , Reza Yousefi * 3
1- Associate Professor in Economics, Payame Noor University (PNU)
2- Professor of Economics, Shahid Chamran University
3- Assistance Professor of Economics, Payame Noor University
Abstract:   (7459 Views)
This paper aims to investigate the interaction effects among market concentration, profitability, research and development (R&D), and advertising in Iran’s manufacturing sector. For this purpose, the quarterly data on Iran’s manufacturing sector was gathered in ISIC (International Standard Industrial Classification) codes, then the interaction effects of structure, conduct and performance was analyzed for industrial groups by Vector Error Correction Models (VECM) over the period 1996-2007. The results show that innovation and R&D are related to concentration, profitability and advertising within industries in the long-run. On the other hand, concentration and profitability explain 50% of variations in innovation and R&D; however, profitability, as a performance indicator, has the most effect on R&D activities in long run. Therefore, our finding is in line with Chicago-U.C.L.A theory. 
Keywords: Structure-conduct-performance, Research and Development, Concentration, Profitability, Advertising
Full-Text [PDF 490 kb]   (4534 Downloads)    
Article Type: Research Paper | Subject: C01 - Econometrics
Received: 2012/12/1 | Revised: 2015/11/4 | Accepted: 2013/10/30 | Published: 2015/10/23
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