The Journal of Economic Studies and Policies

The Journal of Economic Studies and Policies

Productivity and Growth Analysis in Industrial Sector:The Case of Tehran, Esfahan, East Azarbaijan and Khorasan Provinces

Document Type : Original Article

Authors
Akbar komijani 1
Bijan Safavi 2
1 Master of Economics, University of Tehran Abdari
2 Assistant Professor Islamic Azad University, South Tehran Branch
Abstract
The relationship between productivity, output growth and export expansion has been a great attention in contemporary trade and development policy literature. Since productivity is a potentially relevant determinant of comparative advantage in the medium and long terms, several hypotheses have been put forward to explain possible links between sectoral differences in productivity and trade performance, particularly in developing countries. In this study, the link between output growth, total factor productivity (TFP) change and trade performance- export expansion and import substitution- will be investigated for four selective provinces of Iran. These provinces are the most important provinces in industrial sector. The main aim of this research is to determine the groups of industrial activities which the productivity growth of their production factors has significantly been affected by export variable for each of four selective provinces. Thus, those groups of industrial activities are the most important and prior groups in the strategy of export expansion
This research is organized as follows: After introduction, in section 2, we reviewed the research methodology. Section 3 provided an overview of the theoretical literature and distinguishes the relationship between productivity, output growth and export expansion. Section 4 presents and discusses the empirical findings; section 5 Analyzed extensions and Section 6 Concludes. This research shows that growth productivity on foods, basic metals, and Chemicals industries in Tehran province and growth of foods, basic metals, and Chemicals industries in Esfahan province and growth of food, Basic metals, and others industries in East Azerbaijan province strongly dependent to export promotion. Therefore, we can improve the productivity of those industries by supportive policies, investment in export and marketing. On the whole, the industries which have been affected by promotion and expansion of export are: Paper printing industry, Chemicals industries, basic metals industries, and food industries.
Keywords
Total Factor Productivity (TFP)
Economic Growth
Export Expansion
Import Substitution
Trade Orientation
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