The Impact of the Profitability on Market Structure in the Iranian Textile Industries (Dynamic Panel Data Approach)

This paper using a dynamic panel data approach investigates the impact of the profitability on the market concentration in the Iranian four-digit textile industries during the years 2000-2007. To this end, we used the profitability and the market concentration degree to measure the market performance and the market structure, respectively. The results of this study indicate that the profitability as a criterion for market performance has a positive effect on the market concentration. In addition, the effect of the export intensity, sales ratio, and investment intensity on the market concentration is positive.