The Home Market Effect on Exports and Manufacturing Products in Iran

Subject Areas : Labor and Demographic Economics

Rahman Saadat ¹ , Esmaeil Abounoori ² , Saeed Rasekhi ³ , mohammad reza mardani ⁴

1 - Assistant Professor of Economics Department,Faculty of Economic, Management and Administrative Sciences, Semnan University,iran
2 - Professor of Economics Department,Faculty of Economic, Management and Administrative Sciences, Semnan University,iran
3 - دانشگاه مازندران
4 - Economics Department,Faculty of Economic, Management and Administrative Sciences, Semnan University,iran

Received: 2019-01-06 Accepted : 2019-01-06 Published : 2018-11-22

Keywords: Export, F10, JEL Classification: C20, F12. Keywords: Home Market Effect, Iran's Industries, Monopolistic Competition,

Abstract :

Abstract The purpose of this study was to investigate the home market effect in the monopolistic competition market in Iran. The home market effect was investigated in 12 industries based on ISIC two-digit classification published provincially by the Iranian Statistics Center for the period 2001 to 2013. Results show that home market effect exist only in the industry of "production of motor vehicles, trailer and semi-trailer". Therefore, high demand for the products of this industry can lead to exports. In other industries, relatively high demand for the products of these industries in country will generally lead to be a net importer of these goods. Based on the results, investment in the industry, which has the home market effect, is suggested.

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