Total Factor Productivity (TFP) index is the rate of transformation of total input into total output and Total Factor Productivity Growth (TFPG) is used to analyze productivity performance in multiple time periodso, Also, TFPG index is one of the major sources of economic development, thus understanding the factors affecting productivity is very important.
The main purpose of productivity measurement during multiple periods is to identify areas of improvement in activities as well as to aid strategic decision making or continuous improvement. Therefore, information about effective factors on productivity changes is useful. This paper presents a general view to the productivity growth indexes and their qualities. Then, a new method for evaluating the productivity growth is proposed.
This method will be constructing by the combination of DEA and Tornqvist productivity index to measure TFPG and its decompositions.
This paper also evaluates productivity growth and finds out the factors affecting productivity which are critical for the National Iranian Oil Company (NIOC) on the years 1977-2000. The obtained results showed that growth in efficiency is dominant source of change in productivity at NIOC.