The Influence of Productivity in the Economic Growth of Iranian Production Industries through Panel Data Approach

The scientific identification of production growth resources is among the requirements of getting access to sustainable and endogenous economic growth. According to Solow growth model، the economic growth is generated by means of a couple of resources، i. e. the growth in production resources and the growth in productivity resources. This research takes the data of Iranian production industries within 2000-2007 on the basis of international industrial standard two-digit codes through panel data approach and uses production function estimation in order to identify the production resources in the industrial sector as well as to determine the total factor productivity status of production resources. According to the results of the study، Iranian industries’ growth during the period was 12. 34 percent، out of which 16. 6 percent was owing to the total factor productivity growth in the sector; 69 percent of the growth belonged to the labor growth while 13. 5 percent was a result of the growth in capital assets.