Effect of Market Structure on Intra Industry Trade in Iran and its Main Trading Partners

From the late 1970s there were attempts to remove the restrictive assumptions of conventional theories، especially assuming perfect competition market، according to a new hypothesis. New model، the previous forecast in the area of international trade was substantially changed. Specifically because of comparative advantage in international trade went beyond mere given the market structure، imperfect competition، and compatibility with new models، the market was also important. Although considerable theoretical debate about the role of market structure in international trade taken، empirical studies in this field، particularly for developing countries has been limited. Study as an effort in this regard، importance and impact of market structure in IIT and IIT is final. For this purpose، the value added of industry market structure considered for and the calculation of IIT in the six digit level of aggregation is the business hierarchy. The model based on panel data for the period 1997-2006 and the importance of market structure in the inter-industry trade MIIT has been reviewed and finalized. The results of the present study are consistent with the patterns of competition within the industry trade monopoly. To be more precise، despite the low degree of market concentration that changing the market structure is monopolistic competition، significant impact on the business structure of industry and commerce within the industry، it is Iran''s major trading partners. Given that economic growth and development in the context of new patterns of international trade Reduce the share of total trade between industries are trade، the results can be economic policy، especially in the industrial sector business development strategy is important.