Actors Affecting Capital Productivity in the Iranian Mining Sector

to purchase new machinery and equipment and replacing worn-out machines have great importance. Regarding the capital constraint in the mining sector, not using it indicates the weakness of management and the level of actual production is less than the potential level. Accordingly, the present study intends to investigate the factors affecting the average productivity of capital in the mining sector of Iran over the period 1983-2017. Capital in this sector is in the form of equipment and machinery as well as financial capital. Based on the results, the average productivity of capital has been accompanied by many changes, and its lowest amount is observed in the years of the imposed war. Estimation of the econometric model showed that the inverse per capita capital, mineral price index, energy efficiency, and private sector share in ownership have a significant effect on capital productivity at the level of 5%. Therefore, an increase in energy efficiency and  a decrease in per capita capital increase average capital productivity. On the other hand, increasing the price of minerals increases capital productivity.