The micro and macro approach to the exit firms of Iranian industries

The purpose of this study was to investigate the effect of factors affecting the exit firms at three levels of firm, industry, and environments (macro) using the logite panel model for the period of 1997-2015. The results of this study have shown that at the firm level, productivity has a significant effect on the exit of the firm, in other words, with the increase in productivity, the probability of exit from the firm decreases. At the industry level, the rate of entry and the index of concentration have a significant effect on exit, and the increase in the rate of entry will result in an increase in the probability that the exit firm will from the industry. So the structure of the market moves into competition, the probability that a firm will leave the industry will increase. At macro level, economic growth, inflation, concessional facilities and population size had a significant effect on exit. Increasing economic growth, giving more bank loans to the manufacturing sector and increasing the population will reduce the probability of exit, but rising in inflation will help increase exit probability. In the macro level, due to the proximity, interference and impact of provincial production on one another, regional weighting policies for industrial growth, Tracking and monitoring to prevent diversion of targeted facilities to the industry, Stabilizing the population of the regions; In the industry level, the focus is on maintaining existing firms and restoring closed firms rather than establishing new ones, and at firm level it is recommended to upgrade the knowledge and skills of the workforce