Evaluation of Total Factor Productivity Changes in Commerce Sector Using Linear Programming

Document Type : Research Paper

Authors

Abstract

Productivity is defined as optimal allocation of facilities and resources to achieving maximum production. In general, there are two methods including parametric and nonparametric to calculate total factor productivity. In this paper, total factor productivity growth in commerce sector is evaluated by using liner programming model, which is a nonparametric method, as well as the Tronquist index. The results show that the average changes of technological and technical efficiency are 0.885 and 0.915 percent in the investigated period, respectively. In addition, total factor productivity growth is 0.8 percent for periods 1369-1385

Keywords