Man has always thought of efficient utilization of available potentials and sources. Today this subject drives more serious attention compared to the past. Limited available resources, increasing population and growing human needs and demands of those involved make the economy, politics and management and community organizations increase productivity in its priority programs. Productivity has positive effect on phenomena such as competition in international markets, equitable distribution of income, raising living standards, economic development and even political power of a government. However, the study in this field requires knowledge about its development process. So far there has been no comparison of total factor productivity factor in Iran with other countries in the cement industry with regard to position and valuable role in the economy. This research should be considered a step toward eliminating the deficiencies outlined. In this study, using the relative index of total factor productivity factor, the relative total factor productivity factor in Iran and Turkey, South Korea and the United States has been evaluated and analyzed between the years (2007 to 1990) in the cement industry. Also, using panel data approach, the effect of macro and institutional factors such as the role of government, the degree of openness, inflation, and human capital on total factor productivity factor is evaluated. The findings indicate that there is a wide gap between total factor productivity of Iran's cement industry and that of the United States and the trend is not a proper one. This is an alarm for Iran's policy makers and planning managers to plan and utilize proper policies and take necessary actions to close or reduce this wide gap. It is also adversely shown that interference of the government may negatively affect the total factor productivity but, developed human resources and an open economic environment will have positive effect on the productivity. It is also noted that inflation has an adverse effect on total productivity.

Key words: Total productivity, cement industry board data, equal purchasing power.