An empirical study on long-term relationship between total factor productivity and non-oil exports in Iran

• Main Authors: Teymour Mohammadi, Samane Abooali
• Format: Article
• Language: English
• Published: Growing Science 2013-10-01
• Series: Management Science Letters
• Subjects: Total factor productivity; Non-oil exports; Vector error correction model
• Online Access: http://www.growingscience.com/msl/Vol3/msl_2013_277.pdf
• ISSN: 1923-9335; 1923-9343

This paper presents an empirical investigation on the effect of exports of non-oil goods and services on economic growth in Iran over the period 1991-2011 using Vector Autoregressive method. We also analyze the existing causal relationships between total factor productivity and non-oil exports. The results show that total factor productivity has direct and significant relationship with non-oil exports in long-term, it means that if total factor productivity increases, non-oil exports also increases. The results of the survey also indicate that the existing shock on non-oil exports does not have any significant impact on total factor productivity but the incoming shock on total factor productivity reduces non-oil exports during the first period. It also increases non-oil exports during the first period to the fourth period and from the fifth period; it continues until it reduces to a small amount, remains in that amount and eventually disappears.