Author = Alizadeh, Javad

Studying the Causality between Growth of Total Factor Productivity and Economic Growth(Case Study Commerce Sector)

Volume 11, Issue 41, Summer 2011, Pages 111-135

Javad Rezaee, Mohammad Nadali, Javad Alizadeh

Abstract This study examines the relationship between productivity growth and commerce sector growth during the period  of 1981-2007 and  examines empirically the causal link between productivity growth and  commerce sector growth in Iran using unit root and  co- integration techniques within a bi-variate vector auto– regressive (bVAR) and Vector Error Correction (VEC) framework. The results reveal a positive relationship between Productivity growth and commerce sector growth for Iran with the direction of causation running from productivity to commerce sector growth.