The Determinants of Market Share, Case study of Iranian food and beverage industries, (A Panal Data Approach)

مجله اقتصاد و توسعه کشاورزی

Article 5, Volume 28, Issue 3, October 2014, Pages 260-271   

Document Type: Research Article

DOI: 10.22067/jead2.v0i0.32627

Author

A. Dehghani^*

University of Shahrood

Abstract

This paper investigates the effects of advertising, profitability, concentration and Research & Development on the Market Share of Iranian Great food and beverage industries during the period of 2000-2011. For this purpose, we used the more than 50 employee's statistics of industrial 4- digit firms and panel data technique for estimating the model. The main results of this paper reveal that, the elasticity of market share with respect to profitability is greater than of other explanatory variables such as advertising and R&D. Moreover the results indicate that concentration has positive and significant effect on the Market Share in the Iranian Great food and beverage industries. Thus, the main policy recommendations of this study is that Firms and business executives responsible for providing the necessary foundation for the field of research and development costs, advertising costs, and increase profitability in the Iranian Great food and beverage industries provide And there by helpt hem to increase their market share.

Keywords

Market Share; profitability; Advertising; Research & Development; Concentration

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