Measuring and Forecasting of Total Factor Productivity in Pharmaceutical Manufacturing Companies in Iran: an Approach Based Production Method
Subject Areas : medical documents
elham Gholami
1
(Assistant professor, Department of Economics, Science and Research, Islamic Azad University, Tehran, Iran)
Farzaneh Alipour
2
(M.A Student Business Administration, Science and Research, Islamic Azad University, Tehran, Iran)
Keywords: Pharmaceutical Manufacturing Company, Kendrick Index, Production Method, Total Productivity,
Abstract :
Introduction: Nowadays, improving productivity as the most effective way to achieve growth is raised. Key to improving productivity lies in the measurement and analysis of productivity. Also, Analysis and productivity measurement is practical when productivity changes over time with the productivity indices is showed. Methodology: This study is a correlation- regression analysis. At first, production Elasticity coefficients of capital and labor was calculated through estimating a Cobb-Douglas production function using data of 10 pharmaceutical production companies active in the Tehran Stock Exchange during years 1389 to 1393 and panel data with fixed effects . Then, TFP index for these companies is estimated by taking into account the estimated coefficients in the Kendrick index. The index for the years 1394 to 1398 by applying the scenario of continuity of labor, capital and added value for any company is predicted. Results: TFP during the years 1389 to 1393 show that the two companies Alborz Darou and Luqman is located in the better status and Tehran Chemical Company is located in the lowest position. Forecasting for TFP during the next five years also shows the two Luqman and Alborz Darou and Rayhan are in good condition, but Tehran Chemical Company continues to be exposed to unsuitable conditions. Conclusion: The findings suggest that Tehran Chemical Company to improve its total factor productivity should seriously pursue productivity cycle management.
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2- Bagheri A, Baghestani NM, & Parsley fesharaki N. The measurement and analysis of productivity in the country's regional electricity companies, monthly and economic policies and issues review, 2012;1. [Persian]
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7- Vsalyan L, Molaee M. The efficiency of power distribution companies Ardabil, National Conference on Information and Communication Technology Management; 2014. [Persian]
8- Yadollahzadeh Tabari NA, Khvshayy SZ. Measured TFP welcome drink beverage company, Journal of Economic Modeling, 2006; 2(5). [Persian]
9- Bernstein P, Mamuneas،T. R&D depreciation، stocks user costs and productivity growth for U.S.R&D intensive industries: Journal of Structural Change and Economic Dynamics, 2006.
10- Hsiao C. Analysis of Panel Data, 2th Edition, Cambridge University Press; 2003: 57.
11- Kopelman Richard E. Managing productivity in organizations, McGraw-Hill, Inc, 1986.
12- Miller, G., Government Financial Management Theory, Marcel Dekke: NY; 2008.
13- Nayudama Y. Factors which hinder or help Productivity improvement in Asian Region. Tokyo. Asian Productivity organization; 1980.
14- Prokopenko J. Productivity management: A practical handbook. Geneva: ILO; 1992.
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1- Imami Meybodi A. The principles of efficiency and productivity measurement (Applied Science), Second Edition, Institute for Trade Studies and Research; 2000. [Persian]
2- Bagheri A, Baghestani NM, & Parsley fesharaki N. The measurement and analysis of productivity in the country's regional electricity companies, monthly and economic policies and issues review, 2012;1. [Persian]
3- Tahamipour M, Salehi I. Blessing, measure and analyze the growth of total factor productivity in sugar beet, sugar beet Magazine, 2013; 29. [Persian]
4- Khaksar G. Measured productivity in the aluminum industry, economic research, 2011; 1(1). [Persian]
5- Zenouz B, Hamid Bakhtiari H. Factors affecting the measurement of productivity of factors of production: Case Study in Iran Corbin, Economic Journal, 2007: 2(10). [Persian]
6- Ghalambaz F, Esfandiari AA & Delaware M. Khomeini model of efficiency factors of production and operation of oil and gas companies Caron, Journal of Economic Modeling, 2009; 2(2). [Persian]
7- Vsalyan L, Molaee M. The efficiency of power distribution companies Ardabil, National Conference on Information and Communication Technology Management; 2014. [Persian]
8- Yadollahzadeh Tabari NA, Khvshayy SZ. Measured TFP welcome drink beverage company, Journal of Economic Modeling, 2006; 2(5). [Persian]
9- Bernstein P, Mamuneas،T. R&D depreciation، stocks user costs and productivity growth for U.S.R&D intensive industries: Journal of Structural Change and Economic Dynamics, 2006.
10- Hsiao C. Analysis of Panel Data, 2th Edition, Cambridge University Press; 2003: 57.
11- Kopelman Richard E. Managing productivity in organizations, McGraw-Hill, Inc, 1986.
12- Miller, G., Government Financial Management Theory, Marcel Dekke: NY; 2008.
13- Nayudama Y. Factors which hinder or help Productivity improvement in Asian Region. Tokyo. Asian Productivity organization; 1980.
14- Prokopenko J. Productivity management: A practical handbook. Geneva: ILO; 1992.
15- Sheikh Zahoor Sarwar A. Ishaque, Nadeem Ehsan and Danial Saeed Pirzad, International journal of Productivityand Perfermence Managemant, 2011; (61): 173-193. Emerald Group Pablishing limited 1741-0401.
16- David T, Helpman CE, Alexander Hoffmaister W. International R&D Spillovers and Institutions, 2008, IMF Working Paper, WP/08/104.