Investigating the role of factors affecting the total factor productivity in Iran with an emphasis on human capital and renewable and non-renewable types of energy

This article investigates the impact of factors affecting the total productivity in Iran, in particular the type of energy consumption and human capital during the period of 1971-2014. In this regard, due to the endogeneity problem in the model, the factors affecting the growth of the total factor productivity in Iran were estimated using five different models implemented through GMM. According to the results, the intensity of fossil fuel use significantly reduces the total factor productivity in Iran. Also, the first lag of the total factor productivity, trade openness and intensity of renewable energies are the incremental factors of that productivity in Iran. Finally, the results indicate that human capital and foreign direct investment during the study period did not play a role in the total factor productivity in Iran, nor was the role of their interaction confirmed in productivity.