Estimating of Market Power and Economies of Scale in Textile Industry based on Structural Equations Approach

This study attempts to examine market power based on conjectural variation in textile industry with structural approach. It selected 9 subsector of ISIC code over 1996-2008. The technique of analyzing is Panel data. Results of this paper show that there is market power in 6 subsectors. Highest and lowest coefficients of collusion are related to “Fiber preparation and Spinning industry” and “Kelim industry”, respectively. The economies of size are significant for all subsectors. Higher economy size is related to Carpet and Rug subsector, which equal to 178.51. Lowest is related to Hosiery subsector which is equal to 4.56.