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Paper Information

Journal:   TAHGHIGHAT-E-EGHTESADI   MARCH-JUNE 2007 , Volume - , Number 78; Page(s) 153 To 176.
 
Paper: 

TOTAL FACTOR PRODUCTIVITY (TFP) IN IRANIAN ECONOMIC SECTORS: A DEA APPROACH

 
 
Author(s):  ABBASIAN E., MEHREGAN N.
 
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Abstract: 
This paper intends to improve our understanding of productivity growth performance in Iranian economy during the past three decades. This carried out by focusing on the role of resource reallocations between sectors and its contribution to aggregate productivity growth by using DEA approach.
DEA lends itself naturally to economic sectors performance because of its employment for assessing relative performance of sectors using various inputs to produce outputs. DEA is an ideal method to measure efficiency relative to the best performing sector. This allows us to identify efficient and non-efficient sectors and driving factors determining the efficiency of sectors. To do so, DEA calculates an efficiency score for each sector and generates a best practices frontier. To get this, in this study, TFP analysis is done by using value added data for each sector in Iranian economy. By analyzing data we find that TFP changes for all economic sectors has been roughly increased during the period of study but the service sector situation is unsatisfactory. However, because of the role of service sector in economic growth and development process more attention is needed.
Furthermore, the potential for improvements in productivity growth in service sector through increased use of ICT is still possible.
 
Keyword(s): IRANIAN ECONOMIC SECTORS, EFFICIENCY, TFP , DEA
 
References: 
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