Optimizing the production capacity of small and large industries in the path of economic development; Markov-switching chain approach

The main purpose of this study is to optimize the production capacity of small and large industries in the path of economic development; Markov-switching chain approach. In this study, with the help of econometric techniques and using the Markov-switching chain approach, the production capacity of each small and large industry during the years (2001-2016) was estimated. In order to determine the optimal level of production capacity in small and large industries with two-digit code ISIC.Rev.2 and ISIC.Rev.3 It was used more. In this method, after collecting data and converting current prices to fixed, econometric techniques, especially the logarithmic transcendental cost function method are used. The results of data analysis in large industries showed that; The actual production level is 97645.6 million rials per year. And is acceptable in terms of analysis and indicates the optimal level of production and the minimization point as a function of the average total cost. The average value of real output of industrial enterprises in large industries at the production level is less than the optimal value. In other words, the utilization of production capacity in these industries has been 59%. Also, the results of analysis in small industries showed that; The actual production level is 614213.8 million rials per year, which indicates the minimizing point as a function of the average cost of all small industries. The average value of real output of each industrial enterprises in the production sector of small industries was 654213.8 million rials per year,