Asian Journal of Research in Business Economics and Management
  • Year: 2015
  • Volume: 5
  • Issue: 6

Determinants of Iran's Total Factor Productivity promotion

aPh.D. of Economics, University of Tehrnan, Iran

bMaster Student of Economics, University of Tehrnan, Iran

Online published on 4 June, 2015.

Abstract

Our main purpose in this paper is, regard to the planned horizon for Iran's economy productivity according to Vision Document, the Fourth Development plan, and performance of the country in the Third Development plan, to show in the examined years, what factors could explain changes in Total Factor Productivity (TFP). Using ARDL technic, estimation of determinants of TFP shows institutional quality, accumulation of domestic and foreign R&D, human capital, economic openness, physical capital accumulation, investment in ICT, exchange rate, and inflation are factors that explain productivity growth trend in study period.

Keywords

Total Factor Productivity (TFP), determinants of productivity, ARDL method