Various Practices In Measuring The Total Productivity Factor Of Iraq:Analytical Study For The Period (1970-2017)

Abstract

Abstract

The index of the total productivity factor is one of the most important measures expressing the efficiency of resource use, and an important indicator of technological development among the countries of the world. His great contribution to economic growth reveals his ability to lead economic growth.

The strong negative changes taking place in the total factor productivity of the country confirm a series of successive events such as the decline in economic growth (negative growth), for example the decline in total productivity during the Great Depression of 1929, and the slowdown in total productivity in the United States of America in the seventies. On the other hand, achieving distinct real economic growth means improved efficiency and performance and a clear rise in the efficiency of resource utilization accompanied by a distinctive technological development for the country concerned, as has happened in China for the past two decades.

It was revealed to us by measuring the growth in the total productivity factor of Iraq in the long term, and after using five diverse productivity functions through which (calculating economic growth) was applied, and using three methods (formulas) for each of the five functions and they are; (Solo remainder, regression, and Ferguson's dummy variable method for instability), we have fifteen time series of TFP growth. It has become clear that the calculation of the total productivity factor suffers from a (technological illusion), and there is no technological development in Iraq for the period (1979-2003), at the very least, as "it became clear to us that there is a clear weakness in the contribution of the factor of total productivity to economic growth," and it became clear that the efficiency of resource utilization did not rise to the level of ambition, and the reason is mainly due to political instability, accompanied by the misuse and distribution of resources, which contributed to the deterioration of the economic and social conditions of Iraq specifically during the period (1980-2017).

It was also found that the dummy variable of political instability has taken many forms and continuously influencing, was reflected in the fluctuation of growth values ​​in the factor of total productivity calculated by methods and formulas, totaling fifteen practices of the total production function. The successive political events with their diversity were a concomitant characteristic and negatively affecting the Iraqi economic growth during the mentioned period.