Extended Abstract
Introduction: Productivity is one of the main strategies for achieving economic growth in conditions of limited production resources, which not only affects the efficiency and effectiveness of production processes, but also directly influences the quality of life and social welfare. Increasing productivity can raise real income, enhance purchasing power of goods and services, improve housing and education conditions, increase leisure time, and promote social and environmental programs. The aim of this research is to measure productivity and identify factors affecting productivity changes in the petrochemical industry listed on the Tehran Stock Exchange (TSE).
Method: This is quantitative research employing the Hicks-Moorsteen Index (HMI) and Data Envelopment Analysis (DEA) to measure productivity changes. Subsequently, regression analysis is used to identify factors affecting productivity variations. The population includes of firms operating in the petrochemical industry listed on the Tehran Stock Exchange (TSE). The sample of the study consisted of 14 petrochemical companies that have been operating since 2010, and were selected through purposive non-probability sampling method. Data were collected by referring to the Comprehensive Database OF All Listed Companies (CODAL) website and financial reports including balance sheets, profit and loss statements, and other information related to the variables under study, extracted for each company. To measure productivity, the Hicks-Moorsteen Index (HMI) was used. It uses a combination of inputs and outputs. In addition, to measure productivity changes, the data envelopment analysis method was applied to evaluate the relative efficiency of each company. Then their productivity changes are calculated using the Hicks-Moorsteen Index (HMI). However, Generalized Least Squares (GLS) regression was used to analyze the effects of different variables on productivity changes.
Findings: The results indicated that the highest productivity growth was related to Farabi Petrochemical Company (FPC) in 2018, at a rate of 2.723. Moreover, the average productivity of companies during the ten-year period was 1.024, which is more than one and indicates an increase in the productivity of companies during this period. The results also demonstrated that human capital, financial capital, and trade openness have a significant effect on productivity changes.
Conclusion: Productivity in the petrochemical industry improves through investment in human and financial capital. In this regard, the government's short-term and long-term policies, programs and plans can play an effective role. In addition, the need to pay attention to human resource development, strengthening financial investments, and improving the level of international trade are crucial for improving the productivity in the petrochemical.