The Intellectual Capital, Productivity Changes and Efficiency: Evidence of Iran’s Insurance Industry

Fathabadi, Mehdi

Document Type : ORIGINAL ARTICLE

Author

Mehdi Fathabadi

Assistant Professor of Economics, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran

Abstract

This study examines the impact of intellectual capital on changes in productivity and efficiency in Iran’s insurance firms for period 2008-2013. First, it estimated the Malmquist productivity index (MPI) and efficiency index with data envelopment analysis (DEA) approach. Second, this paper examines the impact of intellectual capital components (human capital, structural capital, financial capital) on changes in productivity and efficiency through panel data regressions.
Our MPI findings indicate that most of insurance firms experienced decrease in productivity over the sample period; which it is due to decline in efficiency. The fixed effects estimation results reveal that intellectual capital and its individual components have significantly positive impacts on changes in productivity and efficiency of insurance firms. We suggest that general insurers in Iran should invest in intellectual capital, including improving their managerial skills, to gain sustainable growth in productivity. The findings of this study may lead to a better understanding of the relative changes in total productivity of general insurance firms. By identifying changes in efficiency and productivity, better management decisions can be made to achieve greater productivity.

Keywords

20.1001.1.22285954.1396.8.29.9.8

Main Subjects

total factor productivity of production؛

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Economic Growth and Development Research

The Intellectual Capital, Productivity Changes and Efficiency: Evidence of Iran’s Insurance Industry

References

References

Volume 8, Issue 29 - Serial Number 29
December 2017
Pages 156-145

The Intellectual Capital, Productivity Changes and Efficiency: Evidence of Iran’s Insurance Industry

References

References

Volume 8, Issue 29 - Serial Number 29December 2017Pages 156-145

Volume 8, Issue 29 - Serial Number 29
December 2017
Pages 156-145