Factors Affecting Riding Cars Industry with an Emphasis on the Role of Innovation

Over the past few decades, intra-industry trade has become one of the most important issues of international concern. Iran needs a model to further its economic goals and improve its business relations with its major trading partners in non-oil industries. Therefore, in this study, with a particular attention to the industry of riding cars and the role of the key components of innovation and the size of the government at the macro and economic level, the linear and nonlinear relationship between these variables is examined. According to the results, nonlinear relationship (inverse-U) between the innovation variable and commercial vehicle trade has been confirmed. Also, government size has had a positive and significant impact on the trade of this industry. Linder markers and geographical distances as control variables have not had a significant effect on the level of business of riding cars, and membership variables in the WTO and ECO have contributed to the expansion of trade in this industry.