Effectiveness of Competition Policies on Manufacturing Performance (Case Study of Iran’s Manufacturing Sector)

In this study the impacts of competition policy, including trade liberalization and privatization on the growth of Iran's manufacturing sector will be examined.Studying this issue between Iranian manufactures based on ISIC 4 digit code and dynamic panel approach implies that freer trade (tariff reduction) increases competition pressure for the monopoly industries and thus enhance the efficiency of firms.Also the results show that the privatization policy has a positive effect on productivity growth in manufactures with low competition degree which shows that profitability encourages new owners' incentive to invest on modern technologies or to better use of resources in the level of available technology.Due to the findings of this study emphasize on competitive policies (freer trade and privatization) in manufactures with low competition degree and profitable lead to productivity promotion.