Investigating the Efficiency of Production Factors in the Motor Vehicles, Trailers and Semitrailers Industry of Tehran Province

This paper analyzes the efficiency of production factors in the motor vehicle, trailer and semi-trailer industry of Tehran province by focusing on formal and informal human capital indices, firm size, technology and ownership. The purpose of this study, besides calculating the total factor productivity, labor and capital productivity during the period of 2004-2016, has investigated the factors affecting the total factor productivity in this industry by using the statistical data of the Industrial of Iran Statistical Center.The most important factors affecting total productivity include human capital through formal and non-formal education, the overall scale of the firm, the ratio of public-owned firms to total firms, and technology.The results show that human capital variables, total scale of firm, have positive and significant effect on total factor productivity and negative effect of ratio of publicly owned workshops to total workshops is negative.