Accounting the Growth of in Iran Manufacturing Sector by Emphasizing on ICT

The measurement of contribution of physical capital, Information and Communication Technologies (ICT) capital, labor and total factor productivity growth to economic growth has been an important issue in economics for a long time. The aim of this paper is to estimate the contribution of physical capital, ICT capital, labor and total factor productivity growth of manufacturing value added in Iranian manufacturing industries. For this purpose, we used the date of ISIC 2-digit codes during 2000-2007 using growth accounting analysis method. findings shows that the contribution of physical capital in growth is %36, the labor %34, information technology %3 and total productivity %27. So, physical capital and unskilled labor have dominant role in the growth but low in information technology. Also, manufacturing industries has a decreasing return to scale in Iran.