Evaluating the Total Factor Productivity Growth in Manufacturing Industries of Iran (Data Envelopment Analysis Approach)
Abstract
This paper examines the total factor productivity changes for 23 main manufacturing industries (2-digit ISIC group) and country's provinces using data envelopment analysis during 2005 to 2007. The results show 2.3% increase in the productivity of the whole sector (average over the studied period), while the productivity of the country's provinces decreases by 7.3%, in the same period. We find Food and Beverage products and Khuzestan province having the highest productivity growth. Non-optimal allocation of resources and using of old equipments are the most important drawbacks of productivity growth for 23 main ISIC groups and provinces. Finally estimation of the regression models by panel data method reveals the privatization and increasing of labor’s available capital having a significant effect on productivity growth.References
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