An Analysis of Factor Effecting total factor productivity:A case study of Iran Pharmaceutical industry

In this study, the effective factors on Total Factor Productivity (TFP) with the emphasis on human capital indices, technology and management among twenty selected pharmaceutical industries of Iran in the period of 2222-2222, have been studied. Total Factor Productivity is measured by Divisia method, and effective factors on Total Factor Productivity have been identified with the use of Panel data technique. The effective factors on Total Factor Productivity in estimated pattern are as below: The percentage of the high-educated employed people(official education), per capita cost for educational enterprise (unofficial education), research and development capital stock,output value, cumulative number of the new products, the ratio of advertisement cost and marketing to enterprise output valueand utilization rate of capacity. The studying results show significant and positive effects of the below factors: The percentage of the high-educated employed people, per capita cost foreducational enterprise, research and development capital stock,output valueand utilization rate of capacity to Total Factor Productivity and the negative effect of cumulative number of the new products and the ratio of advertisement cost and marketing to enterprise output value. So, technical progress by different ways (human capital progress, technology and management) has been effective to productivity improvement. Among mentioned factors, the percentage of the high-educated employed people, enterprise production index and utilization rate of capacity have had the most significant effect on total productivity.