Document Type : Research Paper
Authors
1 Master Economic development and planning in Department of Economics, Faculty of Management and Economics Shahid Bahonar University of Kerman, Kerman, Iran
2 , Associate Professor in Department of Economics, Faculty of Management and Economics Shahid Bahonar University of Kerman, Kerman, Iran
3 Professor in Department of Economics, Faculty of Management and Economics Shahid Bahonar University of Kerman, Kerman, Iran
Abstract
In recent decades, the decline in total factor productivity (TFP) has become an economic challenge in many countries.
One of the main drivers of this decline is the misallocation of resources among firms, which has a significant impact on economic performance. This research aims to investigate the extent of profit or loss resulting from the misallocation of production factors, using data from the Statistical Center of Iran for workshops with ten or more employees from 2011 to 2020. The research methodology is based on the analysis of microeconomic data and, by calculating physical productivity and value added, the status of various industries has been evaluated. The findings show that the chemical, non-metallic mineral, and petroleum products industries have had the highest productivity and value added, while the leather, clothing, and machinery repair industries have recorded the lowest. Also, the elimination of production and capital deviations has created the most improvement in high-yield industries and has shown the need for resource redistribution. In this regard, supporting low-yield industries, investing in research and development, improving energy and transportation infrastructure, and providing tax incentives are proposed. These measures can increase the productivity and competitiveness of industries and contribute to sustainable economic growth
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