The Relationship between Efficiency and Industrial Concentration of Food and Beverage Industries in Iran

Subject Areas : Labor and Demographic Economics

K.  soheili ¹ (دانشیار اقتصاد دانشگاه رازی)
SH.  Fattahi ² (دانشیار اقتصاد دانشگاه رازی)
M.S  zabihi dan ³ (دانشجوی دکتری اقتصاد دانشگاه رازی)
M.  hadizadegan ⁴ (دانشجوی دکتری اقتصاد دانشگاه رازی)

Received: 2014-06-19 Accepted : 2014-08-18 Published : 2015-02-01

Keywords: L10, L11, L13, L66, C30,

Abstract :

In this paper, the relationship between scale efficiency and industrial concentration of 22 food and beverages industries are studied during 1997-2007. In this regard, the scale efficiency is calculated firstly. Then, industrial concentration is assessed by using Herfindahl- Hirschman index. Furthermore, by the help of Granger causality test, the causality relationship between scale efficiency and concentration variables is determined. The results of this research indicate that there is one-sided causality from concentration toward efficiency. Estimated Panel model confirms the validity of QL theory using 2SLS approach and shows that the increase of concentration reduces the efficiency of food and beverage industries in Iran. Thus, in order to increase the efficiency of food and beverage industries, policy makings should be focused on reducing concentration in these industries.

References:

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