Measuring Growth of Total Factors Productivity (TFP) Based on the Decomposition of Frontier Function (Case study of Iranian Industries)

摘要

This article analyzes the rate of technical progress (TP) and total factor productivity (TFP) of 140 Iranian industries using stochastic frontier approach(SFA).The results show that the highest growth rate of technical progress during the 1995-2007 is related to manufacture of plastics in primary forms and of synthetic rubber, manufacture of motor vehicles, manufacture of basic iron and steel. There search findings also imply that firstly, the average growth of TFP was about 1.28 so as technical progress and technical changes respectively had the greatest role on that in industry sector. Furthermore, manufacture of parts and accessories for motor vehicles and their engines, manufacture of motor vehicles, manufacture of other food products and manufacture of basic iron and steel have had the highest growth rate of TFP.