The Effects of Foreign Trade Variables on the Total Factor Productivity growth in Tehran's Industries with an Emphasis on Export Development

Having presented an analysis of the relationship between foreign trade and a methodological approach of the utility of production factors as well as its influencing factors in industrial divisions in Tehran, this paper aims at presenting the relationship among trading direction, the utility growth of production factors in industries and the growth of industrial productions in Tehran province. Measured in this paper are the effects of the variables of export development and import replacement for each section, wherein due to the export leap of the industrial unit (i.e. the increase of the share of export in output growth of the industrial unit), the utility of production factors will have a greater growth. This is also true with the industrial sub-sections of the province. The share of the variable of export growth in the industrial output growth does not affect the increase of the total utility growth of production factors in industrial sub-sections, wood production section, wood products, printing and publishing sections and the related industries, production of miscellaneous products from oil and coal, oil refineries, production of scientific and measurement control tools, and visual goods. This is due to the insignificant amount of export in these sections during the recent years, and the internality of consumption market of the products of these sections which leads to the opposite effect of export growth of that section on the utility growth of production factors.