Does controlling for unobservables solve the productivity puzzles? Evidence from Iran

Document Type : Research Paper

Author

Abstract

In this reaserch by comparing some of the recent litreture on indentification production Function, we estimate total factor productivity. We focus on parametric methods, especially Blundell and Bond (2000), Ollay and Pakes (1996), Levinsohn and Petrin (2003) and OLS.Using panel data on plant-level of 4-digits isic in Iran from 1380 to 1390. We choose Levinsohn and Petrin (2003) as the most appropriate estimator then we use that estimator for estimating productivity of plants. At the end, we investigate the relation between firm size, productivity and, its ownership and productivity.

Keywords


خیابانی، ناصر، مشیری، سعید، شاکری، عباس و درویشی، باقر (1390). تخمین بهره‌وری با حل مسأله تورش همزمانی برای برخی صنایع منتخب ایران  (86-1380). اقتصاد مقداری، 8 (1): 49-23.
نیلی، مسعود، فاطمی اردستانی، سید فرشاد و درگاهی، حسن (1391). افزایش توان رقابت‌پذیری صنعتی ایران، انتشارات اتاق بازرگانی و صنایع و معادن تهران.
فطرس، محمدحسن، دهقانپور، محمدرضا و ده‌موبد، بابک (1391). تأثیر بهره‌وری بر رشد اقتصادی صنایع تولیدی ایران با رهیافت داده‪های ترکیبی. فصلنامه‌ی فرآیند مدیریت و توسعه، شماره‌ی 79. صص27-44.
مهرگان، نادر و سلطانی صحت، لیلی (1393). مخارج تحقیق و توسعه و رشد بهره‌وری کل عوامل تولید بخش صنعت. فصلنامه‌ی سیاست‌های راهبردی و کلان، شماره‌ی 5. ص1-24
 Ackerberg, D. A., Caves, K., & Frazer, G. (2015). Identification propertise of recent production function estimators, Econometrica, 83(6), 2411-2451
Ackerberg, D. A., Lanier Benkard, C., Berry, S., & Pakes, A. (2007). Econometric Tools for Analyzing Market Outcomes. Handbook of Econometrics, 4171-4276.
Acs, Z. J., Carlsson, B., & Karlsson, C. (1999). The linkages among entrepreneurship, SMEs and the macroeconomy. Entrepreneurship, small and medium-sized enterprises and the macroeconomy, 3-42.
Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 277-297.
Aw, B. Y. (1999). Productivity Dynamics of SMEs in Taiwan. The Pennsylvania State University.  
Van Beveren, I. (2012). Total factor productivity estimation: A practical review. Journal of Economic Surveys, 26(1), 98-128.
Van Biesebroeck, J. (2007). Robustness of Productivity Estimates. The Journal of Industrial Economics, 55(3), 529-569.
Biesebroeck, J. V. (2008). The Sensitivity of Productivity Estimates: Revisiting Three Important Productivity Debates. Journal of Business and Economic Statistics, 321-367.
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of econometrics, 87(1), 115-143.
Blundell, R., & Bond, S. R. (2000). GMM Estimation with Persistent Panel Data: An Application to Production Functions. Econometric Reviews 19  (3): 321-340.
Dhawan, R. (2001). Firm size and productivity differential: theory and evidence from a panel of US firms. Journal of Economic Behavior & Organization: 269-293.
Levinsohn, J., & Petrin, A. (2003). Estimating Production Functions Using Inputs to Control for Unobservables. The Review of Economic Studies, 70 (2), 317-341.
Marschak, J., & Andrews., W. H. (1944). Random Simultaneous Equations and the Theory of Production. Econometrica, 143-205.
Oh, D., Heshmati, A., & Lööf, H. (2009). Total factor productivity of Korean manufacturing industries: comparison of competing models with firm-level data. Unpublished manuscript.
Olley, S., & Pakes, A. (1996). The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica, 64(6). 1263-1298.
Pakes, A. (1996). Dynamic structural models, problems and prospects: mixed continuous discrete controls and market interaction. Paper presented at the Advances in Econometrics, Sixth World Congress.
Petrin, A., Poi, B. P., & Levinsohn, J. (2004). Production function estimation in Stata using inputs to control for unobservables. Stata Journal, 4, 113-123
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. Stata Journal, 9 (1), 86.
Wooldridge, J. M. (2009). On estimating firm-level production functions using proxy variables to control for unobservables. Economics Letters, 104(3), 112-114.
Yasar, M., Raciborski, R., & Poi, B.  (2008). Production function estimation in Stata using the Olley and Pakes method. Stata Journal, 8 (2), 221.