A review of factors affecting total factor productivity in the ‎manufacturing industries in province

Abstract

Since productivity is the strategy that its increase has been discussed as the key to economic growth and development in recent decades, the increase in the productivity of manufacturing firms, especially in the labor force and human capital can lead to economic growth, and improvement in the economic situation of people. Therefore, considering the importance of the issue, this study is trying to examine the factors influencing total factor productivity in the manufacturing industries of Kermanshah province using panel data model in the period of 1989-2011. The findings show that the use of labor force leads to improved total factor productivity and the move toward technology and technology-based activities do not benefit the society or improve total factor productivity.