Investigating structural and environmental factors on the dynamics of firms entering and exiting the market in Iranian industries

In this study, based on structural and environmental factors, we have investigated the dynamics of firms entering and exiting the market and turbulence in Iranian industries. To achieve this goal, data from the field of industrial activity of two-digit codes based on the International Classification of Goods and Services (ISIC) during the period 2009 - 2019 has been used. In addition to structural and environmental variables, the impact of macroeconomic variables such as real exchange rate, inflation rate, inflation rate uncertainty and real exchange rate uncertainty have been studied as control variables in the model. The Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model was used to measure the uncertainty variables. After examining the significance of the data and their co-integration using the kao test, the proposed model was estimated as fixed effects by the Feasible Generalized Least Squares (FGLS) method. The results of the study indicate that during the period under review, structural and environmental factors have a significant impact on the dynamics of firms entering and leaving the market.