Evaluating the productivity of Iran's factory industries in terms of undesirable output

The production of all goods and services is often associated with unwanted side output, which neglecting it in the calculation of the output can cause a significant distortion in the calculation of productivity This article, using the estimation of Malquist--Lionberger and Malmquist indexes, has investigated the difference in the results of attention to the undesirable output in calculating the productivity of 24 ISIC two-digit code activity fields during the period of 2011-2018. . The comparisons show that there is a significant gap between the productivity score with regard to adverse conditions and productivity regardless of adverse conditions. The results of the test confirm the existence of the considered significant difference.Therefore, it statistically makes and considering unfavorable is more reliable and can be more appropriate in this context. The average productivity of the manufacturing sector without taking into account the undesirable result was equal to 0.895, while with this result, the productivity of the same sector reached 0.908. This result shows the importance of paying attention to the side output for accurate measurement of corporate productivity