Ranking of provinces on the base of TFP and determinant of effective factors on TFP

Governments in regional and national level try to improve economic and productivity growth by different polices. The being aware of effective factors in regional and national economic and productivity growth is essential for government success. The low economic and productivity growth in both regional and national level have been induced problems such as underdevelopment, inequality and poverty in some regions. In this paper, we used decomposition and econometric approach for analysis and determining factors that caused inequality in productivity in regional (provincial) level. Theoretical Framework In economic theories, there are many effective factors on TFP. In macro point, the domestic and foreign factors affect the TFP in both regional and national level. The domestic factors include education, health, infrastructure, financial system, and institutional structure, social and environmental ones. The researches in this field conclude that human capital, public investment and infrastructure are determinant factors in inequalities of productivity in both regional and national level. In regional and national level studies, the simultaneous effects of human capital, public infrastructure and physical capital on productivity have not been surveyed.