ESTIMATION OF PRODUCTIVITY IN MANUFACTURING INDUSTRIES IN IRAN

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MOSHIRI SAEED; KHIABANI NASER; SHAKERI ABAS; DARVISHI BAGHER

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Journal: Journal of Quantitative Economics Year:2011 | Volume:8 | Issue:1 (28) Page(s): 23-50

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Information Journal Paper

Title

ESTIMATION OF PRODUCTIVITY IN MANUFACTURING INDUSTRIES IN IRAN

Author(s)

MOSHIRI SAEED | KHIABANI NASER | SHAKERI ABAS | DARVISHI BAGHER | Issue Writer Certificate

Keywords

PRODUCTIVITYQ2

SIMULTANEITY BIASQ2

MANUFACTURING INDUSTRYQ2

IRANQ2

Abstract

Empirical studies often employ Solow method to calculate PRODUCTIVITY. However, potential correlation between inputs and the unobserved firm-specific PRODUCTIVITY shocks in the estimation of production function parameters leads to a biased estimation.This implies that firms that have a large positive PRODUCTIVITY shock may respond by using more inputs. In recent years, several techniques offering improvements over Ordinary Least Squares have been proposed for estimating production functions. These methods offer SIMULTANEITY BIAS and selection bias corrections not accounted for in an OLS framework. In this paper, we review the econometrics methodology associated with estimation of PRODUCTIVITY, and use an econometrics method to control SIMULTANEITY BIAS and selection bias problems. We estimate the PRODUCTIVITY of firms using Levinsohn and Petrin (2003) method and panel data for 10 selected 2-digit (ISIC2) manufacturing industries for the period 2000-2007. The results show that the average PRODUCTIVITY growth rate is 1.79 per cent with the highest rate of 9.62 percent in 2001 and the lowest of rate -3.98 percent in 2002. Among the manufacturing industries, other non-metallic mineral products and textiles have the highest PRODUCTIVITY growth and rubber and plastic products and electrical machinery and apparatus have the lowest PRODUCTIVITY growth.

Cites

THE RELATIONSHIP BETWEEN TOTAL FACTOR PRODUCTIVITY AND OIL GROWTH

References

ESTIMATING THE PRODUCTIVITY OF LARGE SCALE INDUSTRIES IN KHUZESTAN

Cite

APA: Copy

MOSHIRI, SAEED, KHIABANI, NASER, SHAKERI, ABAS, & DARVISHI, BAGHER. (2011). ESTIMATION OF PRODUCTIVITY IN MANUFACTURING INDUSTRIES IN IRAN. JOURNAL OF QUANTITATIVE ECONOMICS (QUARTERLY JOURNAL OF ECONOMICS REVIEW), 8(1 (28)), 23-50. SID. https://sid.ir/paper/400129/en

Vancouver: Copy

MOSHIRI SAEED, KHIABANI NASER, SHAKERI ABAS, DARVISHI BAGHER. ESTIMATION OF PRODUCTIVITY IN MANUFACTURING INDUSTRIES IN IRAN. JOURNAL OF QUANTITATIVE ECONOMICS (QUARTERLY JOURNAL OF ECONOMICS REVIEW)[Internet]. 2011;8(1 (28)):23-50. Available from: https://sid.ir/paper/400129/en

IEEE: Copy

SAEED MOSHIRI, NASER KHIABANI, ABAS SHAKERI, and BAGHER DARVISHI, “ESTIMATION OF PRODUCTIVITY IN MANUFACTURING INDUSTRIES IN IRAN,” JOURNAL OF QUANTITATIVE ECONOMICS (QUARTERLY JOURNAL OF ECONOMICS REVIEW), vol. 8, no. 1 (28), pp. 23–50, 2011, [Online]. Available: https://sid.ir/paper/400129/en

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