A Study on the effective factors on capital productivity in sub-agricultural sectors of Iran

Because of the increasing limitations of production factors, productivity improvement is known as an effective method for obtaining production growth. So, in this paper, we applied GAP method for calculating average capital productivity during 1959-2006 in sub-agricultural sectors, and Panel Data method for determining effective factors on capital productivity. Results showed that the amount of labor used for each unit of capital and human capital have positive effects on capital productivity in sub-agricultural sectors of Iran. Results also showed that fishery and forestry sectors have had maximum capital productivity during this period. So, with respect to the result that, human capital for each unit has a positive effect on capital productivity, it is suggested that using specialist labor will help efficient use of production techniques.