Economics Research

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

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

  • Receive Date 24 May 2010
  • Revise Date 15 August 2010
  • Accept Date 02 November 2010

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