Paper Information

Journal:   TAHGHIGHAT-E-EGHTESADI   Summer 2004 , Volume - , Number 65; Page(s) 33 To 75.
 
Paper: 

AN EVALUATION AND ANALYSIS OF THE INTERACTIONS BETWEEN HUMAN RESOURCE PRODUCTIVITY, PRODUCTION COSTS AND MANUFACTURING EXPORTS IN IRAN

 
 
Author(s):  KARIMI FARZAD, PIRASTEH H.
 
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Abstract: 
The multiple objective of this paper was: 1) to identify the effective detenninants of labor factor productivity and 2) to measure the extent of the effect of labor productivity on production costs and export of manufacturing products in Iran. For this purpose, based on (ISIC-2 digit) time-series manufacturing data for (1994-99) period, a system of simultaneous equations system was utilized, using an I2SLS regressiontechnique. The results indicatedthe educationand dexteritylevel of industrial labor force in Iran has had an appreciableand meaningfuleffect on labor productivityduring the study period.Moreover,increasedlabor productivitythat was experiencedby the industry, has resulted in a reductionin the unit labor cost, which in turn, has led to reductionin average cost of production, making Iranian manufacturing exports more competitive. The results do not show any significant and meaningful effect of manufacturing exports on industrial labor productivity, and thus, gives no support to the "learning-by-exporting" hypothesis.The papercalls for an effectivegovernmentpolicyto strengthenthe integrationand consistencyof the industryslabor forceeducationand specializationrequirementswith the educationalprogramswithin the higher education system in order to enhance the international competitivenessof the manufacturingsectorin Iran.
 
Keyword(s): LABOR PRODUCTIVITY,EXPORT INTENSITY, UNIT LABOR COST, LEARNING-BY-EXPORTING, EDUCATIONALSPILLOVERS
 
References: 
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