Comparing the effective Factors on labor Force productivity in small and large industry in Iran: 1994- 2013
Subject Areas : Business Management
Mohammad Mowlaei
1
(
Assistant professor of Bu-Ali Sina University, Department of Economics
)
Azadeh Shahab
2
(
MA student of Bu-Ali Sina University, Department of economics
)
Keywords: Human Capital, C23, physical capital, L60, Accumulation of R&D, Small and Large Industries JEL Classification: J24,
Abstract :
Although, the small and large industries are essentially different in thenumber of labor Force and the amount of capital, but their optimalproduction obviously is under the effect of productivity of labor Force.The aim of this study is to analyize and making clear the amount of theeffectiveness of Factors on labor Force productivity in small and largeindustries in Iran during 1994 to 2013. Some of the important Factorsthat are effective in increasing productivity are: physical capital, humancapital, the real wage level, the accumulation research and development(R & D), and the gap between actual and potential production. In thisresearch, using the statistical information from the statistical center ofIran for the ninth industrial groups (I.S.C, Rev, 2) and using panel datamethod. The results showed that the impact of above Factors (except thegap production) on labor productivity is positive and the amount of themin small industries are more than the large ones. Thus, using the optimumof the studied variables in large industries and improving theperformance of them cause the increase in labor production in small andlarge industries in Iran.
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Ansari Renani, Gh., & Sabzi Ali Abadi, S.(2009), Prioritizing Effective Organizational Factors in Promoting the Productivity of Manpower in Small Industries. Commercial Surveys, 39, 49-64, (In Persian).
Apergis, N., Economidou, C., & Filippidis, I.(2008), Innovation, Technology Transfer and Labor Productivity Linkages: Evidence from a Panel Manufacturing Industries. Review of World Economics, 144(3), 491-508.
Ashrafzadeh, S. H. R., & Mehregan, N.(2008), Panel Data Econometrics. Tehran: Central Office for Research Planning & Supervition Univercity of Tehran, (In Persian).
Bakhtiari, S., Dehghanizadeh, M., & Hosseinipoor, S. M.(2014), nalysis of Labor Productivity and Efficiency in the Cooperative Sector: A Case Study of the Industrial Cooperative Sector in the Province of Yazd. Journal of Management and Development Process, 3, 73-45, (In Persian).
Baldwin, J. R., & Gu, W.(2003), Plant Turnover and Productivity Growth in Canadian Manufacturing. Analytical Studies Research Paper, 193.
Baldwin, J. R., Jarmin, R., & Tang, J.(2002),The Trend to Smaller Producers in Manufacturing: A Canada/U.S. Comparison. Economic Analysis Research Paper Series, 3.
Baltagi. H, B.(2005), Econometric Analysis of Panel Data. John Wiley & Sons, Ltd.
Bartel, A.P., & Lichtenberg, F.R.(2012), The Comparative Advantage of Implementing New Technology. Review of Economics and Statistics, 69(1), 1-11.
Becker, G. S.(2008), Human Capital, a Theoretical and Empirical Analysis, with Special Reference to Education. New York: Columbia University Press.
Black, S., & Lynch, L.(2008), Human-capital investments and productivity. Am. Econ. Rev., 86(2), 263-267.
Corvers, F.(2008), The Impact of human capital on labor productivity in manufacturing sectors of the European Union. Applied Economics, 29(8), 975-987.
Diewert. E.(1973), Separability and A Generalization of The Cobb-Douglas CostT Production Indirect Utility Functions. paper book.
Dupuy, A., & Grip, A. D.(2006), Elasticity of substitution and productivity, capital and skill intensity differences across firms. Economics Letters, 90 (3), 340-347.
Elmi, Z., Ehsani, M. A., & Javidnia, D.(2014), The Impact of Small and Medium Industries on Economic Growth in Iranian Provinces during 2004-2005, Journal oF Macroeconomics (Journal oF Economics Scinnces), 15, 13-24, (In Persian).
Fallahi, F., & Sojudi, S.(2011), Investigating Factors Affecting Human resources Productivity in the Industries of Iran. Human Resource Management Researches, 1, 93-117, (In Persian).
Griliches, Z.(2005), Productivity Puzzles and R&D: Another Non-explanation. Journal of Economic Perspectives, 2, 9-21.
Gujarati, D.N.(2010), Basic Econometrics. Tehran: Tehran University Publishers, (In Persian).
Halid, O.Y.(2015), The Cobb-Douglas Production of the Nigerian Economy (1975-2009). International Journal of Statistics and Applications, 5(2), 77-80.
Huselid, M.(1995), The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance. Academy of Management Journal, 38(5), 635-672.
Idson, I, Land Y., & Walter, O.(2000), Workers are more Productivity in Large Firms.
American, E. Islam, Sh., & Syed Shazali, S. T.(2011), Determinants of Manufacturing Productivity: Pilot Study on Labor-Intensive Industries. International Journal of Productivity and Performance Management, 60(6), 567-582.
Kalantari, B., Arabmazar, A.(2011), Estimated potential output of the country in the years 1959-2002. Journal of Economics and Modeling, 4, 55-73, (In Persian).
Khan, T. S.(2006), Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector. IFM Working Paper, WP/06/230.
Komijani, A., Padash, H., & Sadeghien, A.(2013), A Strategic Analysis on the effect of Human Capital on Labour Productivity Growth. Journal of Economic Strategy, 3, 8-36, (In Persian).
Komijani, A.,Shahabadi, A.(2001), The Effect oF Foreing (Through Foreing Trade) and Domestic R&D Activites on the Iranian Total Factor Productivity. Iranian Journal of Trade Studies (IJTS), 18, 29-68, (In Persian).
Leung, D., Cesaire, M., & Yaz, T.(2008), Firm Size and Productivity. Bank of Canada Working Paper. 2008-45.
Liu, T., & Li, K. W.(2012), Analysing China’s productivity growth: Evidence from manufacturing industries. Economic Systems, 36, 10-20.
Mincer, J.(2012), Schooling, experience and earnings, National Bureau of Economic Research. New York.
Muhlau, P., & Lindenberg, S.M.(2003), Efficiency Wages: Signals or Incentives? An Empirical Study of the Relationship between Wage and Commitment. Journal of Management and Governance, 7, 385.400.
Nelson, R. R. & Phelps, E. S.(2005), Investment in Humans, Technological Diffusion an Economic Growth. American Economic Review Paper and Proceedings, 56, 69-75.
Oraei, S. K.(2012), Productivity in industries, Tehran: Iranian academic center for education,culture and research Publishers, (In Persian).
Papadogonas, T. & Fotini, V.(2005), Labor Productivity Growth in Greek Manufacturing Firms. Operational Research, 5(3),459-472.
Romaguera, P.(1991), Wage Differentials and Efficiency Wage Models: Evidence from the Chilean Economy. Kellog Institute DiscussionWorking Paper. No. 153.
Romer, P.(1987), Growth based on Increasing Returns due to Specialization. American Economic Review. 77(2), 56-62.
Schultz, T. W.(1991), Investing in people: the economics of population. Translator: M. Motavassli, Tehran: Monetary and Banking Research Institute (Central Bank of Islamic Republic of Iran), (In Persian).
Schultz, T.W.(2005), Investment in Human Capital. Am.Econ. Rev., 51(1), 1-17.
Snodgrass, D.R., & Biggs, T.(2006), Industrialization and Small Firms Patterns and Policies. San Francisco. International Centre for Economic Growth.
Shahab, A.(2015), Investigating and comparing factors affecting labor productivity in the small and large industries of Iran during the years 1958-2014. Master's Thesis, Hamedan:Bu Ali Sina Univercity, (In Persian).
Soltani, E., & Baharaldini, B.(2012), Estimating labor productivity in the major industries of Fars province. Monthly Quarterly Journal of Economic Research and Policies, 2, 7-36, (In Persian).
Spiegel, M.M.(1994), Determinants of Long-Run Labor Productivity Growth: a selective survey with some new empirical results. Working Papers in Applied Economic Theory from Federal Reserve Bank of San Francisco, 94-17.
Statistical Center of Iran. (2014), Classification of Iran's economic activities (Rev4-ISIC). Available in:https://www.amar.org.ir/,(In Persian).
Van Ark, B., & Monnikhof, E.(1996), Size Distribution of Output and Employment: A Data Set For Manufacturing Industries in Five OECD Countries, 1960s-1990. OECD Economics Department Working Paper, 166.
Van Biesebroeck, J.(2005), Firm Size Matters: Growth and Productivity Growth in African Manufacturing. Economic Development and Cultural Change, 53, 546.583.
Welch, F.(2009),Education in production. J. Polit. Econ., 78, 35-59.
World Bank. (2013), Trends in Developing Economies. Oxford Press.
Yang, C. H., & Chen, Y.H.(2012), R&D, productivity, and exports: Plant-level evidence from Indonesia. Economic Modelling, 29: 208-216.
Zahir Hossein, M., & Al-Amir, Kh. S.(2010),Use of Cobb-Doughlas Production Model on Some Selected Manufacturing Industries in Oman. Education, Business and Society, 3(2), 78-85.
Zeranezhad, M., & Ghannadi, B.(2005), Estimating and Analyzing the Labour Productivity in Khuzestan's Industry Sector. Iranian Journal of Economic Research, 7, 33-52, (In Persian).
_||_Aggrey, N., Eliab, L., & Joseph, S.(2010), Human Capital and Labor Productivity in East African Manufacturing Firms. Current Research Journal of Economic Theory, 2(2), 48-54.
Ansari Renani, Gh., & Sabzi Ali Abadi, S.(2009), Prioritizing Effective Organizational Factors in Promoting the Productivity of Manpower in Small Industries. Commercial Surveys, 39, 49-64, (In Persian).
Apergis, N., Economidou, C., & Filippidis, I.(2008), Innovation, Technology Transfer and Labor Productivity Linkages: Evidence from a Panel Manufacturing Industries. Review of World Economics, 144(3), 491-508.
Ashrafzadeh, S. H. R., & Mehregan, N.(2008), Panel Data Econometrics. Tehran: Central Office for Research Planning & Supervition Univercity of Tehran, (In Persian).
Bakhtiari, S., Dehghanizadeh, M., & Hosseinipoor, S. M.(2014), nalysis of Labor Productivity and Efficiency in the Cooperative Sector: A Case Study of the Industrial Cooperative Sector in the Province of Yazd. Journal of Management and Development Process, 3, 73-45, (In Persian).
Baldwin, J. R., & Gu, W.(2003), Plant Turnover and Productivity Growth in Canadian Manufacturing. Analytical Studies Research Paper, 193.
Baldwin, J. R., Jarmin, R., & Tang, J.(2002),The Trend to Smaller Producers in Manufacturing: A Canada/U.S. Comparison. Economic Analysis Research Paper Series, 3.
Baltagi. H, B.(2005), Econometric Analysis of Panel Data. John Wiley & Sons, Ltd.
Bartel, A.P., & Lichtenberg, F.R.(2012), The Comparative Advantage of Implementing New Technology. Review of Economics and Statistics, 69(1), 1-11.
Becker, G. S.(2008), Human Capital, a Theoretical and Empirical Analysis, with Special Reference to Education. New York: Columbia University Press.
Black, S., & Lynch, L.(2008), Human-capital investments and productivity. Am. Econ. Rev., 86(2), 263-267.
Corvers, F.(2008), The Impact of human capital on labor productivity in manufacturing sectors of the European Union. Applied Economics, 29(8), 975-987.
Diewert. E.(1973), Separability and A Generalization of The Cobb-Douglas CostT Production Indirect Utility Functions. paper book.
Dupuy, A., & Grip, A. D.(2006), Elasticity of substitution and productivity, capital and skill intensity differences across firms. Economics Letters, 90 (3), 340-347.
Elmi, Z., Ehsani, M. A., & Javidnia, D.(2014), The Impact of Small and Medium Industries on Economic Growth in Iranian Provinces during 2004-2005, Journal oF Macroeconomics (Journal oF Economics Scinnces), 15, 13-24, (In Persian).
Fallahi, F., & Sojudi, S.(2011), Investigating Factors Affecting Human resources Productivity in the Industries of Iran. Human Resource Management Researches, 1, 93-117, (In Persian).
Griliches, Z.(2005), Productivity Puzzles and R&D: Another Non-explanation. Journal of Economic Perspectives, 2, 9-21.
Gujarati, D.N.(2010), Basic Econometrics. Tehran: Tehran University Publishers, (In Persian).
Halid, O.Y.(2015), The Cobb-Douglas Production of the Nigerian Economy (1975-2009). International Journal of Statistics and Applications, 5(2), 77-80.
Huselid, M.(1995), The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance. Academy of Management Journal, 38(5), 635-672.
Idson, I, Land Y., & Walter, O.(2000), Workers are more Productivity in Large Firms.
American, E. Islam, Sh., & Syed Shazali, S. T.(2011), Determinants of Manufacturing Productivity: Pilot Study on Labor-Intensive Industries. International Journal of Productivity and Performance Management, 60(6), 567-582.
Kalantari, B., Arabmazar, A.(2011), Estimated potential output of the country in the years 1959-2002. Journal of Economics and Modeling, 4, 55-73, (In Persian).
Khan, T. S.(2006), Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector. IFM Working Paper, WP/06/230.
Komijani, A., Padash, H., & Sadeghien, A.(2013), A Strategic Analysis on the effect of Human Capital on Labour Productivity Growth. Journal of Economic Strategy, 3, 8-36, (In Persian).
Komijani, A.,Shahabadi, A.(2001), The Effect oF Foreing (Through Foreing Trade) and Domestic R&D Activites on the Iranian Total Factor Productivity. Iranian Journal of Trade Studies (IJTS), 18, 29-68, (In Persian).
Leung, D., Cesaire, M., & Yaz, T.(2008), Firm Size and Productivity. Bank of Canada Working Paper. 2008-45.
Liu, T., & Li, K. W.(2012), Analysing China’s productivity growth: Evidence from manufacturing industries. Economic Systems, 36, 10-20.
Mincer, J.(2012), Schooling, experience and earnings, National Bureau of Economic Research. New York.
Muhlau, P., & Lindenberg, S.M.(2003), Efficiency Wages: Signals or Incentives? An Empirical Study of the Relationship between Wage and Commitment. Journal of Management and Governance, 7, 385.400.
Nelson, R. R. & Phelps, E. S.(2005), Investment in Humans, Technological Diffusion an Economic Growth. American Economic Review Paper and Proceedings, 56, 69-75.
Oraei, S. K.(2012), Productivity in industries, Tehran: Iranian academic center for education,culture and research Publishers, (In Persian).
Papadogonas, T. & Fotini, V.(2005), Labor Productivity Growth in Greek Manufacturing Firms. Operational Research, 5(3),459-472.
Romaguera, P.(1991), Wage Differentials and Efficiency Wage Models: Evidence from the Chilean Economy. Kellog Institute DiscussionWorking Paper. No. 153.
Romer, P.(1987), Growth based on Increasing Returns due to Specialization. American Economic Review. 77(2), 56-62.
Schultz, T. W.(1991), Investing in people: the economics of population. Translator: M. Motavassli, Tehran: Monetary and Banking Research Institute (Central Bank of Islamic Republic of Iran), (In Persian).
Schultz, T.W.(2005), Investment in Human Capital. Am.Econ. Rev., 51(1), 1-17.
Snodgrass, D.R., & Biggs, T.(2006), Industrialization and Small Firms Patterns and Policies. San Francisco. International Centre for Economic Growth.
Shahab, A.(2015), Investigating and comparing factors affecting labor productivity in the small and large industries of Iran during the years 1958-2014. Master's Thesis, Hamedan:Bu Ali Sina Univercity, (In Persian).
Soltani, E., & Baharaldini, B.(2012), Estimating labor productivity in the major industries of Fars province. Monthly Quarterly Journal of Economic Research and Policies, 2, 7-36, (In Persian).
Spiegel, M.M.(1994), Determinants of Long-Run Labor Productivity Growth: a selective survey with some new empirical results. Working Papers in Applied Economic Theory from Federal Reserve Bank of San Francisco, 94-17.
Statistical Center of Iran. (2014), Classification of Iran's economic activities (Rev4-ISIC). Available in:https://www.amar.org.ir/,(In Persian).
Van Ark, B., & Monnikhof, E.(1996), Size Distribution of Output and Employment: A Data Set For Manufacturing Industries in Five OECD Countries, 1960s-1990. OECD Economics Department Working Paper, 166.
Van Biesebroeck, J.(2005), Firm Size Matters: Growth and Productivity Growth in African Manufacturing. Economic Development and Cultural Change, 53, 546.583.
Welch, F.(2009),Education in production. J. Polit. Econ., 78, 35-59.
World Bank. (2013), Trends in Developing Economies. Oxford Press.
Yang, C. H., & Chen, Y.H.(2012), R&D, productivity, and exports: Plant-level evidence from Indonesia. Economic Modelling, 29: 208-216.
Zahir Hossein, M., & Al-Amir, Kh. S.(2010),Use of Cobb-Doughlas Production Model on Some Selected Manufacturing Industries in Oman. Education, Business and Society, 3(2), 78-85.
Zeranezhad, M., & Ghannadi, B.(2005), Estimating and Analyzing the Labour Productivity in Khuzestan's Industry Sector. Iranian Journal of Economic Research, 7, 33-52, (In Persian).
