Document Type : Research Paper

Authors

• Nader Dashti ¹
• Kazem Yavari ²
• hosein sadeghi soghdel ²

¹ The Faculty of Accounting and Management Department, Islamic Azad University of Eslsmshahr Branch

² The Faculty of Economics and Management Department, University of Tarbiat Modares

Abstract

Abstract
          Technological evolutions as one of basic resources of productivity growth plays a significant role in economic growth. Therefore, after world war ІІ, the determination of measure and bias of technological change has been subject of many research efforts.
           In this paper we have studied on the trend and bias of technological change in Iran’s industry by econometric approach from 1971 to 2008. We estimated a translog cost function in addition to equations system of cost share, using Seemingly Unrelated Regressions (SUR) approach. The results show that the rate of technological change has been -1.10 percent during the study years. It means that there is a decline in rate of cost of productive units over time. Furthermore, the results indicate that technological change has been biased towards the use of more energy and material, while labor and capital have been saved.

Keywords

• Productivity
• Technological change
• Translog function
• Industry