Document Type : Research Paper

Authors

• Javad Rezaee ¹
• Mohammad Nadali ²
• Javad Alizadeh ³

¹ M.S. in Economics, Faculty of Institute for Trade Studies and Research

² Ph.D. in Economics, Researcher of The Central Bank of Iran

³ Ph.D. in Commerce Management, Faculty of Islamic Azad University, Damavand Branch

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.

Keywords

• Total Factor Productivity (TFP)
• Economic Growth
• Commerce Sector