An Investigation on the Relationship between Firms’ Size and Productivity Growth in Iranian Pharmaceutical Industry

This paper investigates the relationship between firms’ size and Productivity growth in Iranian Pharmaceutical Industry. The studied sample includes 23 pharmaceutical firms accepted in Tehran stock exchange. The firms are classified in terms of the number of labour into large and small-medium size. Based on the classification, the effect of ownership on the productivity growth has alsobeen studied.  Data envelopment analysis (DEA) is used to estimate productivity and efficiency changes during the years from 2001 to 2007. The results show that inpharmaceutical industry there is no significant relationship between the size of selected firmsand the growth of total factor productivity.