Industrial Concentration in the Iranian FoodP roducts and Beverages Industries

The paper examines industrial concentration in Iranian food products and beverages industries using firm level data aggregated to the 4-digit ISIC industry level between 2002 and 2004. Based on different concentration indices the average level of concentration has increased slightly for the period of study. The empirical results show that increase in the level of concentration is more likely in industries that are more profitable. The results also show that ir1itial capital requirement has positive and significant effect on the likelihood of changes in the level of concentration in the selected industries. Factors such as size, advertising intensity and R&D intensity do not have a significant effect on the probability of changes in concentration