Volume 10, Issue 3 (2010)                   QJER 2010, 10(3): 53-73 | Back to browse issues page

‎ 20.1001.1.17356768.1389.10.3.4.9

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Yavari K, Ashrafzadeh H R, Ahmadzadeh K. Exports Diversification and Productivity in the Iranian Manufacturing Industries. QJER 2010; 10 (3) :53-73
URL: http://ecor.modares.ac.ir/article-18-10523-en.html
Exports Diversification and Productivity in the Iranian Manufacturing Industries
Kazem Yavari * 1, Hamid Reza Ashrafzadeh2 , Khaled Ahmadzadeh3
1- Associate Professor of Economics, Tarbiat Modares University
2- Staff Member of Institute for Trade Studies and Research
3- Ph. D. Candidate and Researcher in Institute for Trade Studies and Research
Abstract:   (6215 Views)
This paper aims to evaluate the relationship between exports diversification and productivity for nine Iranian manufacturing industries using a panel data approach. Empirical results indicate that productivity and exports have similar trends over the period considered in this study. Indicators such as capital-labor ratio in sub-sectors of the manufacturing and the real effective exchange rate have positive effects on productivity. Exports diversity index has also a positive and significant impact on productivity such that one percentage change in this index increases productivity by 1.8 percent. The effect of trade liberalization on manufacturing productivity is negative and negligible, implying that, to promote productivity, policymakers should consider other fundamental and institutional factors in addition to the foreign trade.
Keywords: Panel Data, productivity, Diversification of Exports, Sub-Sectors of Manufacturing Industries
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Received: 2009/12/21 | Accepted: 2010/06/28 | Published: 2010/10/2
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