  This study provides the theoretical framework and empirical model for
productivity growth evaluations in agricultural sector as one of the most
important sectors in Iran's economic development plan. We use the Solow
residual model to measure the productivity growth share in the value-added
growth of the agricultural sector. Our time series data includes value-added
per worker, employment, and capital in this sector. The results show that the
average total factor productivity growth rate in the agricultural sector is
-0.72% during 1991-2010. Also, during this period, the share of total factor
productivity growth in the value-added growth is -19.6%, while it has been
forecasted to be 33.8% in the fourth development plan. Considering the
effective role of capital in the agricultural low productivity, we suggest
applying productivity management plans (especially in regards of capital
productivity) to achieve future growth goals.
