Total Factor Productivity role in Economic Growth of Iran to achieving the goals of Vision 4141
Subject Areas : Financial Economics
Hossein
Mirzaei
1
(Assistant Professor of Economics,Islamic Azad University, Central Tehran Branch)
Esmaeil
Asghari
2
(M.A Student)
Keywords: Total factor productivity, Economic Growth, Human Capital, vision, Outward orientation,
Abstract :
Total Factor Productivity is a various factor affecting on economic growth. This study also reviewed studies on total factor productivity, examines the effect of human capital, openness of the economy, inflation and terms of trade on Total Factor Productivity (TFP) for panel data for the region Southwest Asia countries in the 52-year ago( 089-5992). Countries that have been studied include Iran, Saudi Arabia, Turkey, Kuwait, UAE, Oman, Pakistan, Egypt, Bahrain and the Israel. These countries were selected because of their importance in the regional outlook of Iran. These countries are classified in two groups, including the member states OPEC and Non-OPEC. According to the estimates of variables, human capital and openness of the economy has strong effect on total factor productivity. The human capital has a higher elasticity (7631) against open economy variable (with elasticity 7611) in all countries. In the group OPEC countries, open economy variable has a higher elasticity (5681) and human capital inelastic (9901) is against. Openness of the economy plays in total factor productivity in this group. Openness of the economy variable has a positive impact and high elasticity (165) in NonOPEC countries. In the first step these countries should go towards creating a competitive and open economy infrastructure then go towards improving productivity. To achieve Vision 7191 goals, we need to move towards an open economy.
