Estimating and Analyzing the Labour Productivity in Khuzestan's Industry Sector

This paper aims to estimate labour productivity in Khuzestan's industries during 1971-2001. To this end a generalized Cob-Douglas model is applied in which capital stock, gap between actual and potential output and research cost are independent variables. Since the data on the fist two variables were not available, two methods, i.e., exponential trend of investment and Intriligator method, were applied to generate them. The findings of the research show that labour productivity has direct relationship with capital stock as well as research cost, but indirect relationship with output gap.