Identifying theEffect of Research and Development on Total factor Productivity of Iranian¡äs Manufacturing sector:2001-2007

Mahdieh MehdizadehShahi

International Journal of Learning and Development, 2013, vol. 3, issue 1, 221-229

Abstract: This paper is to investigate the effect of research and development on total factor productivity at the level of manufacturing sector of Iran during 2001-2007. We have used translog production function. The result indicate that research and development has a positive and insignificant impact on productivity. We find that the production function is not a cob-douglas one and also the return of scale in manufacturing sector of Iran is increasing. This insignificant relationship can be explained by the gap of R&D expenditure ratio between Iran and other countries. According to the little R&D expenditure impact on productivity in manufacturing sector, Policymakers must pay more attention on R&D activities in Iran.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:mth:ijld88:v:3:y:2013:i:1:p:221-229

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