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Identifying theEffect of Research and Development on Total factor Productivity of Iranian¡äs Manufacturing sector :2001-2007

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  • Mahdieh MehdizadehShahi

Abstract

This paper is to investigate the effect of research and development on total factor productivity at the level of manufacturing sector of Iran during 2001-2007. We have used translog production function. The result indicate that research and development has a positive and insignificant impact on productivity. We find that the production function is not a cob-douglas one and also the return of scale in manufacturing sector of Iran is increasing. This insignificant relationship can be explained by the gap of R&D expenditure ratio between Iran and other countries. According to the little R&D expenditure impact on productivity in manufacturing sector, Policymakers must pay more attention on R&D activities in Iran.

Suggested Citation

  • Mahdieh MehdizadehShahi, 2013. "Identifying theEffect of Research and Development on Total factor Productivity of Iranian¡äs Manufacturing sector :2001-2007," International Journal of Learning and Development, Macrothink Institute, vol. 3(1), pages 221-229, December.
    • Handle: RePEc:mth:ijld88:v:3:y:2013:i:1:p:221-229
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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