1
Faculty of Economics at Shahid Beheshti University
2
Faculty of Economics at University of Yazd
3
M. A. in Economics
Abstract
In the literature on economy, the amount of output that minimizes a firm's long-run average cost curve is referred to as the minimum efficient scale (MES). It can be calculated by different methods such as Comanor-Wilson, cost, or median method. MES can be evaluated with regard to the trend of incumbents as well as new firms in each industry. In the industry-economy literature, this notion is known as survivor approach. This paper aims to determine MES in Iranian manufacturing industries by this method. The dataset encompasses manufacturing industrial firms' characteristics at two-digit industry levels. Also, a transition matrices technique is employed to determine their efficient size. The results demonstrate that MES is closely related to the kind of industry in which a firm is operating. In addition, there exist industries with more than one efficient size. With regard to political issues and based on the findings of this paper, instead of introducing a single efficient size for all industries, a separate efficient size should be offered for each industry.
Davoudi, P., Feizpour, M. A., & Radmanesh, S. (2012). Determination of a Minimum Efficient Size for Iranian Manufacturing Industries Using a Survivor Approach. The Journal of Economic Policy, 4(7), 31-54.
MLA
Parviz Davoudi; Mohammad Ali Feizpour; Saideh Radmanesh. "Determination of a Minimum Efficient Size for Iranian Manufacturing Industries Using a Survivor Approach". The Journal of Economic Policy, 4, 7, 2012, 31-54.
HARVARD
Davoudi, P., Feizpour, M. A., Radmanesh, S. (2012). 'Determination of a Minimum Efficient Size for Iranian Manufacturing Industries Using a Survivor Approach', The Journal of Economic Policy, 4(7), pp. 31-54.
VANCOUVER
Davoudi, P., Feizpour, M. A., Radmanesh, S. Determination of a Minimum Efficient Size for Iranian Manufacturing Industries Using a Survivor Approach. The Journal of Economic Policy, 2012; 4(7): 31-54.
)