Location and Productivity: Evidence from Iranian Manufacturing Industries

This study aims to analyze the regional disparities in industrial productivity during 2003-2013 by using determinants of industrial productivity in the Iranian provinces, which in this study are divided in to firm, employee and expenditure characteristics. To this end, Divisia productivity index is used for calculating the industrial productivity and econometrics panel data with random coefficient is employed for analysis of its determinants. The results show that the characteristics of firm, employee and expenditure affect the industrial productivity of provinces. the results indicate the necessity of paying attention to deterrent and promoter factors of industrial productivity in industrial development strategies of provinces.