Abstract

Productivity is one of the most important factor among factors affecting rate ofgrowth and its promotion is one of the main goals of countries. According to the country's fifth development plan; it is predicted that 33.3% of annual economic growth will be provided by improving productivity. Therefore, identifying factors promoting productivity are very important. This paper examines the causal relationship among productivity in the industries sector and some economic variables in Iran, by applying the global equilibrium and econometric techniques. The study explains the concepts and indicators of productivity and describes its role in promoting economic growth. The applied model of the study has been developed by using global equilibrium analysis and econometric techniques to estimate the coefficients of the basic stipulated relation. The results of estimation indicate that factors such as relative prices of industrial products, improving resources quality, and technical progress, influence productivity in the industries sector of the economy. Using data from 1961 to 2009 period, the coefficients of the model were estimated, the main hypotheses were examined and solutions for improving productivity are presented. A global equilibrium approach in productivity is defined and measured, and a new method in factors analyses is introduced.

Key words: Econometrics, global equilibrium, industries sector, productivity, relative prices.