The aim of this paper is to assess the impact of information technology (IT) on the productivity and efficiency of manufacturing industries in Iran. So, the data will be collected from 23 Iranian manufacturing industries during ''2002-2006'' and the methods such as DEA and panel data used to study the subject. Results obtained by the above two methods represent that IT has a positive and statistically significant effect on the productivity of manufacturing industries. It will be more in high IT-intensive industries than the other industries. But, there is no significant difference between the growth of labor productivity in IT-producing and IT-using industries.

Discretionary models of data envelopment analysis (DEA) assume that all inputs and outputs are discretionary, i.e., controlled by the management of each decision making unit (DMU) and varied at its discretion. In any realistic situation, however, there may exist exogenously fixed or non-discretionary inputs or outputs that are beyond the control of a DMU s , management. There are some models that incorporate non-discretionary inputs into DEA models. This paper reviews these approaches, providing a discussion of strengths and weaknesses and highlighting potential limitations. Moreover, a new method is developed that overcomes existing weaknesses.

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