Evaluating the Total Factor Productivity Changes using Tornquist Index (Case Study: Industry & Mine Sector)

According to the 4th development plan, all economic sectors have to provide a part of GDP by TFP during the development plan years. So, based on this, the amount of 39/1% of sector value added has been planned to be provided by TFP in the Mine & Industry sector. Also, it's expected that annual growth rate of TFP be 4/4% in each year. In this paper, we would like to know about impact of TFP growth of this sector in developing objectives. Also to find the capabilities of this sector to increase the sector value added. As other questions in this paper, we want to know that is this sector efficient or not. And finally to analysis the productivity change of mentioned sector. For this reason this paper uses linear programming and nonparametric Tornquist index to discuss about Mine & Industry sector total factor productivity change.The results show that, annual average growth of TFP in industry & mine sector is 0.8% which has large gap with development 4th plan law goals that is predicted 4.4 percent.