THE TOTAL FACTOR PRODUCTIVITY (TFP) OF THE TRADE SECTOR IN IRAN

Bijan Safavi

Journal of Applied Economic Sciences, 2008, vol. 3, issue 1(3)_Spring2008

Abstract: This article explores the important and effective components of the total factor productivity (Tfp) of the trade sector of Iran and estimates their effect in the recognized model by the annual data of the period of 1960-2004. First, we have estimated the function of the producing sector of the commerce to calculate the total factor productivity (TFP). Then we have calculated the index of the total factor productivity (Tfp) on the basis of the part of the factors of the production in the section of the devebpment. And at last, we have explored the key and determining factors of the of the total factor productivity of the section in the model of the related model. The results of this research show that the development of the capital stock per capita, the medium development the years of the education and the real exchange rate have the positive and meaningful effect on the total factor productivity, whereas the inflation rate has the negative and meaningful effect. It is important to say that the medium growth of the years of the education has the most positive effect on the total factor productivity (TFP) and the inflation rate has the most negative effect on the total factor productivity (TFp) of the section.

Keywords: the total factor productivity human capital; the inflation rate; the real exchange rate; the section of commerce; Iran (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ush:jaessh:v:3:y:2008:i:1(3)_spring2008:15

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