Impact of Fleet Renovation on the Productivity of Iran’s Road Transportation Industry

The main purpose of this article is to evaluation the impact of fleet renovation on productivity of Iran’s road transportation industry. To meet this ends the data of the Iranian road transportation and the capital-embodied technical progress growth model were used during 1353-1393. The results of capital inventory and labor coefficients showed that the return to scale in the Iran’s road transportation was constant. Also, in this sector, new investment and renovation increased moreover the average age of the fleet reduced and it has resulted to the growth rate of qualitative capital and productivity increased. Therefore, in Iran's road transportation, the direct relationship between fleet renovation and productivity is confirmed. So, the use of superior technology equipment and the replacement of fleets by new and advanced fleets are recommended.