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Investigating the impact of exchange rate changes on total factor productivity of selected firms in Iran's petrochemical industry
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Esmaeil Yasini1   , Reza Roshan1 , Mohammad Rezaei *2 |
1- Persian Gulf University
2- Persian Gulf University , rezaei@pgu.ac.ir |
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Abstract: (3 Views) |
Total factor productivity and how various factors affect it are important economic issues, especially in the petrochemical industry sector in countries with non-renewable oil and gas resources, including Iran.Therefore, this study focuses on examining the impact of exchange rate changes and some other factors on total factor productivity in 18 selected listed companies in the Iranian petrochemical industry in the years 2017-2019.For this purpose, the dynamic least squares method and the generalized Cobb-Douglas function have been used in the Solow method. The results of this study confirm the negative impact of exchange rate changes on total factor productivity of selected petrochemical industry firms during the research period. In addition, research estimates indicate a positive impact of value added, capital stock, energy costs, petrochemical feedstock costs and negative impact of labor force on total factor productivity Based on the results, it is recommended that economic policymakers provide the basis for improving productivity with the aim of reducing the range of exchange rate fluctuations and creating relative stability. It is also necessary to review the human resource structure through performance evaluation and optimizing the mix of productive and non-productive forces. Furthermore, considering the relatively limited contribution of capital stock to productivity improvement, it highlights the necessity of investing in high-tech equipment.
JEL Classification: L65, c23, O47, F31.
Keywords: total factor productivity, exchange rate changes, Iranian Petrochemical Industry, he Cobb-Douglas production function, dynamic least squares method
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| Keywords: total factor productivity, exchange rate changes, Iranian Petrochemical Industry, he Cobb-Douglas production function, dynamic least squares method.
JEL Classification: L65, c23, O47, F31. |
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Full-Text [PDF 3577 kb]
(3 Downloads)
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Type of Study: paper |
Subject:
Energy Economic
Received: 2025/07/25 | Accepted: 2025/11/1 | Published: 2026/07/1 | ePublished: 2026/07/1
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