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Manufacturing firms born like humans do and after some stages in their life, die in different ways. With this approach, death is inevitable and just can be delayed. One way to delay this event is having information about the factors influencing that. The purpose of this paper is to study the effects of some factors (like location, size and industrial group) in industrial firms' closure in Yazd province in the third development plan. Data used in this study is gathered from the Yazd Mining and Industry Department database. These are 1539 manufacturing firms that were started their work before 2000, the first year of the Third Development Plan. From these, 175 firms became closed during this period. To determine the effects of these factors, we use the probit regression technique. The results show that firm location (in or out of industrial zones) and firm size doesn't have any effect on closure probability. Moreover the closure probability of older firms is less than the younger counterparts.

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Although many firms enter into the market in completely different sizes, recent facts show that the size distribution of new-entrant firms tend to more homogeneity than disparity over time. This is known as industrial dynamics in the literature of industrial economics. The dominant view in this area is learning by doing, in which firms can enter into an activity at any sizes. However, they will learn over time that which size of the market is effective enough to enable them to remain in the market in the long run to give them the chance to adjust their size. Meanwhile, firms that failed to learn it in a reasonable time will have to exit the market. Therefore, the most significant objective of this paper is to review the way of size distribution in firms in arrival time and its adjustment over time in Iran that is not so far taken into consideration well. This subject can have prestigious application for new-entrant firms as well as increasing their lifetime in the market by decreasing adjustment time for incumbent firms. A descriptive-analytical method has been applied for doing this research. The industrial firm data collected by Statistical Center of Iran (SCI) in ten consecutive years are also used for this purpose. The results indicate that the average size of new-entrant firms is smaller than that of incumbent ones. In other words, manufacturing firms in Iran are born smaller in size in comparison with incumbent firms. Additionally, broad size dispersion of the firms at arrival decline during the learning by doing in most industries and tend to more homogenous size distribution. The results have also revealed that although in most selected industries the average size of new entrants has been increased, the intensity of increase is separable in three groups: 1. firms smaller than industry average, 2. firms with close size to the average industry size and 3. firms larger than industry average. Average growth of firm size located in the middle range (group 2) is about half of this measure toward group 1. However, average growth of firm size located in larger groups (group 3) is about half of this measure toward the group 2. This subject as the most essential findings of the industrial dynamics in the economy of Iran indicate that -unlike the usual- small and medium criterion could be modified to suit the type of industry or be influenced by time. Finally, the findings of this research imply that applying absolute definition for a variable conception (small, medium and large firms) cannot be considered rational.

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Traditional approach to the firm size and its growth rate is based on comparative statics analysis and it does not really deal with the dynamics of growth. This paper takes a dynamic approach to investigate the relationship between firm size and its growth rate for Iranian insurance firms during 2003-2009. The study applies two ways to verify the validity of Gibrat's law in Iranian insurance industry. First way is to consider the independence of two important attributes of firms including firm size and growth rates. The second way is based on panel regression estimation. The results of the study reject the validity of Gibrat’s law and indicate the fact that small firms grow faster than their larger counterparts.

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Entering firms into a business can be a sign of economic dynamism, but to what extent do they enter according to optimal size or converge to it? The answers are given in two approaches. In the first approach, a new- entrant enterprise adjusts its size by learning market and continues to its activity. In the second approach, the enterprise does not adjust its size and exits the market. In this regard, the study of size distribution of new enterprises in Iran’s textile industry is the main purpose of this research. We collect statistical data for new textile businesses during 1997-2005 from Statistical Center of Iran. We use nonparametric method and indicators of employment, output value and value-added for evaluation of the size distribution. The results indicate that the employment size distribution follows an active learning model and does not adapt itself with market conditions. Regarding output value and value-added, the textile businesses follow a passive learning model and converge to the Lognormal distribution. The inability of firms in convergence by employment and their ability in convergence by output and value added criteria are some signs of a rigid labor market in Iran. According to these findings, reconsidering the labor law in order to making it more flexible is essential.

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Many studies have confirmed the acceleration of economic growth through financial development, but just a few studies have discussed the disproportionate effect of financial development on the growth of the firms with different sizes. So the distributional effects of financial development among firms are still unclear. Accordingly, using a dynamic panel model, we have examined the role of small firms in different industries on the effect of financial development on industrial development of Iranian economy. This study has been carried out on 22 industries according to ISIC4 two-digit codes for the period 1383-1393 (Iranian Calendar) using the Generalized Moment Method (GMM). The results of the model confirm that the development of financial intermediaries exerts a positive effect on the industries with a bigger technical share of small firms. In other words, financial development through banking development has a more positive effect on small firms than large firms. This result is not valid for the development of the stock market.