The Impact of key Macroeconomic Variables on TFP in Iran

Due to the important role of productivity in economic growth, the main goal of this paper is to determine the impact of some key macroeconomic variables on TFP in Iran. For this purpose, First, TFP Index is calculated using a non-parametric frontier method of Malmquist. Then, the impact of related variables on the calculated variable, is analyzed using an ARDL method based on time-series data 1358-1393. The results of the estimated model show that the real exchange rate (indicator of global economy's competitiveness), export oil revenues have a positive effect and economic instability, government consumption expenditure (% of GDP) (with two lags in short-run), financial instability have a negative effect on TFP.