Document Type : ORIGINAL ARTICLE
Authors
- Mehran Hafezi Birgani 1
- Alireza Daghighi Asli 2
- Mohammad Gholi Yousefi . 3
- Marjan Daman Keshideh 2
- Mohammad Teymour 4
1 PhD student in Economics, Islamic Azad University, Central Tehran Branch, Tehran, Iran
2 Assistant Professor, Department of Economics, Islamic Azad University, Central Tehran Branch, Tehran, Iran
3 Professor, Department of Economics, Allameh Tabatabaei University, Faculty of Economics, Tehran, Iran
4 Associate Professor, Department of Economics, Allameh Tabatabaei University, Faculty of Economics, Tehran, Iran
Abstract
The main purpose of this study is to optimize the production capacity of small and large industries. In this study, along with the econometric technique and using the costlog function of translog to estimate the production capacity of large and small industries in the years (2001-2018), was introduced. In order to determine the optimal level of production capacity in these industries with the two-digit code ISIC.Rev.2 and ISIC.Rev.3, which was used by the Statistics Center of the country, large workshops of 10 people and more. In this method, after collecting information and converting current prices to constant, the econometric technique is used, especially the method of logarithmic transcendental cost function. Findings obtained from the review of information in large industries indicate that the production level is 976456 million rials per year. And is confirmed by the analysis and shows that the optimal level of production and the minimizing point are a function of the total average cost. The average real output value of industrial enterprises in large industries at the production level is lower than the optimal value. The size of benefiting from the production capacity of these industries is 59%. The results obtained from the analysis in small industries show that; The actual production level is 614213 million rials per year, which indicates the minimizing point as a function of the average cost of all small industries. The average real output value of each industrial firm in the small industrial sector was 65,421 million rials per year, and these firms use only slightly more than 38.6% of their nominal capacity.
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