Productivity in Coal Mines of Iran

Economic Development of any country requires intense use of suitable technology and optimum utilization of economic resources. During the past few decades, economists have directed their attention to productivity, to the extend that the concept is now accepted to be the root of any economic growth. In this paper, different definitions of productivity have been explained and the importance of its increase noted. Total factor productivity is hence adopted as a suitable measure.  A brief description of the coal mines and resources have then been given and finally total productivity of Iranian coal mining industry for the past six years has been measured. For this purpose both physical and financial units, at constant prices, has been used that is considered to be most suitable. Analyses of the results show the reasons of productivity fluctuation. Based upon real data, a mathematical model has been produced that can be used to assess productivity in future. The component of the model highlights weaknesses of the industry and provides the analyst with corrective measures in order to increase productivity