Macroeconomics
Zana Mozaffari; Bakhtiar Javaheri
Abstract
Human capital is a hidden variable. In different economic studies, various proxies have been used as a proxy for human capital, including the average literacy index, the number of graduates or the average number of years of schooling. This study will review the economic literature first, and then the ...
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Human capital is a hidden variable. In different economic studies, various proxies have been used as a proxy for human capital, including the average literacy index, the number of graduates or the average number of years of schooling. This study will review the economic literature first, and then the three pillars of human capital index including education variables, skills and health will be analyzed for the Iranian economy. In addition, by using fuzzy approach and Mamdani Fuzzy Inference System, the human capital index in the Iranian economy during the 1981-2019 period will be estimated. The results of this calculation shows that during the period under study, the human capital index has continuously grown; in 1981, the index was estimated at 0.13 and 0.59 in 2019. On this basis, it can be stated that human capital in the Iranian economy during the 1981 to 2019 period has grown significantly. This accumulation of human capital can be seized in the production processes, leading to increase in production and productivity..
Farhad Dejpasand; abbas arabmazar; shapour seifi
Abstract
The purpose of this paper is to estimate the value of human capital in Iran from 2005 to 2014. In the literature, there are two general approaches for estimating the value of human capital stock: the cost-based approach and the income-based approach. The first approach has been selected by this study. ...
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The purpose of this paper is to estimate the value of human capital in Iran from 2005 to 2014. In the literature, there are two general approaches for estimating the value of human capital stock: the cost-based approach and the income-based approach. The first approach has been selected by this study. The analytical model developed in this study is mainly based on Jorgenson-Fraumeni’s model. This paper has used Markov transition probability matrix to calculate the probability of movement of people between different levels of education. Also to compute income from work of persons’ data, this study employed Mincerian wage equation. The findings show that the value of human capital in current prices in 2014 is about 244370 trillion Rials. The same figure in 2005 is 63769 trillion Rials. Despite the increase in the value of human capital at current prices in 2005-14, the real value (in 2004 constant prices) dropped from the 53359 to around 45937 trillion Rials. However, in 2004 the estimated value of human capital stock is 13 times more than the physical capital stock and 58 times more than the gross domestic product (GDP). The results also show that for men the share of total value of human capital stock has increased and the same value for women has decreased over ten years (2005-2014). In addition, the results indicate that on the average, about 85 percent of the value of the human capital stock of male belongs to Diploma and less. About 62 percent of the value of the human capital stock of female belongs to Diploma and less.
Zahra Dehghan Shabani; Ebrahim Hadian; Faezeh Nasirzadeh
Abstract
Economic theory has emphasized the important role of human capital on national and regional economic growth. The present study aimed to analyze the effect of the composition of human capital on economic growth in Iranian provinces. We estimated a Spatial Dynamic Panel Data model by using Generalized ...
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Economic theory has emphasized the important role of human capital on national and regional economic growth. The present study aimed to analyze the effect of the composition of human capital on economic growth in Iranian provinces. We estimated a Spatial Dynamic Panel Data model by using Generalized Method of Moments technique for 28 Iranian provinces over the period 2001-2011.
The results indicated that tertiary and primary and secondary education had positive and significant effects on economic growth. Also, the human capital structure had an inverse-U-shape effect on economic growth. In other words, growth is increasing in the human capital structure at low levels of the human capital structure, but the relation turns negative once the human capital structure exceeds a critical value.
Seyed Saleh Akbar Mousavi; Jafar Haghighat; Mohammdreza Salmani Bishak
Abstract
Recent technological advances have increased the importance of human capital over the past years. In this paper, we study the impact of human capital on economic growth in Iran using the nonlinear STR method for the period 1345-1389. To this end, we estimate a two regime Logistic Smooth Transition Dynamic ...
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Recent technological advances have increased the importance of human capital over the past years. In this paper, we study the impact of human capital on economic growth in Iran using the nonlinear STR method for the period 1345-1389. To this end, we estimate a two regime Logistic Smooth Transition Dynamic Regression (LSTR) model in which the transition variable is the logarithmic change in human capital. The results show that the impact of human capital on growth is different in two regimes. In the first regime, if the human capital growth rate is below the threshold value, the effects of human and physical capital on economic growth will be negative and positive, respectively. In the second one, human capital has positive and significant impact on economic growth. The main conclusion of the study is that it is crucial to take the type of regime into account.
Fatemeh Kalantar Mahjerdi; Shahnaz Nayebzadeh; Mahmood Moeinoddin
Volume 18, Issue 54 , April 2013, , Pages 153-180
Abstract
The aim of this study was to evaluate productivity and efficiency of intellectual capital of companies listed in Tehran Stock Exchange through Data Envelopment Analysis approach and Malm-quist productivity index. In this study, the automotive industry and component manufacturers listed in Tehran Stock ...
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The aim of this study was to evaluate productivity and efficiency of intellectual capital of companies listed in Tehran Stock Exchange through Data Envelopment Analysis approach and Malm-quist productivity index. In this study, the automotive industry and component manufacturers listed in Tehran Stock Exchange were chosen as pilot, and intellectual capital (human, physical, and structural capital) index was used as input index; stock return, return on assets, and return on equity were utilized as output variables for fifteen companies of this industry between 2006 and 2010. Results from the efficiency of intellectual capital indicated that throughout the years of assessment in this study, it was only a -brake- pad company that had the best performance among the selected companies; this was due to the fact that this company had been able to gain the maximum performance of intellectual capital in the assessed years. Results from the productivity of intellectual capital indicated that in the years between 2006 and 2010, except Saipa, Bahman Group, Zamyad which had a value smaller than 1 for the average productivity rate of their intellectual capital in the investigated growth range, this value was positive for the rest of the selected companies.
Alireza Amini; Hasty Rismanchy; Alireza Farhadi Kia
Volume 14, Issue 43 , July 2010, , Pages 55-80
Abstract
In this study, the factors affecting total factor productivity (TFP) are estimated with an emphasis on foreign direct investment (FDI) in Iran and 23 selected countries using the data over the period 1996-2006. TFP is computed using the Divisia index technique. The findings of this study show that the ...
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In this study, the factors affecting total factor productivity (TFP) are estimated with an emphasis on foreign direct investment (FDI) in Iran and 23 selected countries using the data over the period 1996-2006. TFP is computed using the Divisia index technique. The findings of this study show that the main determinants of TFP comprise FDI capital stock, R&D capital stock, university enrolment gross rate (as a proxy for human capital), the degree of openness (as the main sources of technological progress) and the ratio of actual output to potential output (as a measure of capacity utilization rate).. However, the magnitudes of the estimated parameters confirm that capacity utilization rate has the highest effect while FDI capital stock has the lowest effect on TFP.
Ali Emami Meybodi; Musa Khoshkalam Khosroshahi; Rohallah Mahdavi
Volume 13, Issue 41 , February 2010, , Pages 79-106
Abstract
Productivity improvement is one of the important factors in economic growth.. This paper attempts to study the impact of human capital on Total Factor Productivity in the industrial sector of East Azarbaijan Province in Iran during the period 1374-1385 (1994-2005). To probe the impact of human capital ...
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Productivity improvement is one of the important factors in economic growth.. This paper attempts to study the impact of human capital on Total Factor Productivity in the industrial sector of East Azarbaijan Province in Iran during the period 1374-1385 (1994-2005). To probe the impact of human capital on Total Factor Productivity, the Data Envelopment Analysis (DEA) technique the Malmquist Index have been applied. The results indicate that the management efficiency, as an index of human capital, affects the TFP to almost the same extent as other factors.
Davood Behboodi; Hossien Asgharpour; Siab Mamipour
Volume 13, Issue 40 , October 2009, , Pages 125-147
Abstract
Growth literatures indicates that human capital، education and technologicaly progress are effective factors on economic growth. Empirical studies present that natural resource abundance have an important role on economic growth in natural-resource-rich countries. This studyessaystudy essay investigates ...
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Growth literatures indicates that human capital، education and technologicaly progress are effective factors on economic growth. Empirical studies present that natural resource abundance have an important role on economic growth in natural-resource-rich countries. This studyessaystudy essay investigates the relationship between natural resource abundance، human capital and economic growth in two cases of petroleum exporters' countries: A) Major petroleum exporters B) Other petroleum exporters. We use a panel data for The model of this paper is tested by panel data for the period 1970-2004. The results output of models indicate that physical investment and openness have positive impact on economic growth، and resource abundant and government expenditure ae inversely related with economic growth.، but hHuman capital hasve a different impact inin the two cases sample of paper; so that human capital have It has a negative impact on economic growth in the first case (A)، but while it has a positive impact on economic growth in the second case (B). So، We can conclude that human capital can be main factor to explain slow growth in resource-rich countries. Abundant of natural resource in this countries and bad usage of natural resource can be cause of negative relationship between human capital and economic growth. In other hands، Ccountries that are rich in mineral and oil resources neglect the developing of their human resources by devoting inadequate attention and expenditure to education. So these countries have lower growth rate with respect to others.
Alireza Amini; Zohre Hejazi Azad
Volume 11, Issue 35 , July 2008, , Pages 1-30
Abstract
In this study, we examine factors influencing the Total Factor Productivity (TFP) in the Iranian economy. These factors are the percentage of higher education employees as proxy for human capital, the government research and development capital stock and the ratio of actual output to potential output ...
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In this study, we examine factors influencing the Total Factor Productivity (TFP) in the Iranian economy. These factors are the percentage of higher education employees as proxy for human capital, the government research and development capital stock and the ratio of actual output to potential output as the index of capacity utilization. We estimate TFP using the ARDL (Auto-Regressive Distributed Lag) method covering data over the period 1968-2004. The results indicate that in the long run, the percentage of higher education employees, the government research and development capital stock and the capacity utilization have had positive and significant effects on productivity. In this period, in spite of increasing trend in human capital and the government R&D capital stock, TFP accounts for only five percent of the long run economic growth. The reasons for this meager share of TFP growth is reduced the degree of competitiveness, misallocation and inefficient use of resources in the economy.
Mohammad Ali Kafaei,; Dorostkar Ezzatolah
Volume 9, Issue 30 , April 2007, , Pages 53-76
Abstract
Income distribution is usually affected by social and economic structures and especially by factors such as inflation, unemployment rates and the government size. In addition, the level of literacy and education are also seen as important factors affecting the income gap among different groups. The ...
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Income distribution is usually affected by social and economic structures and especially by factors such as inflation, unemployment rates and the government size. In addition, the level of literacy and education are also seen as important factors affecting the income gap among different groups. The purpose of this article is to study the relationship between educational variables, measured by the literacy level and its dispersion, and income distribution in the Iranian economy for the period 1347-1380 (1968-2001). Our findings indicate that as the average level of education increases, income inequality will decrease; but with increasing the standard deviation of education among citizens, income equality worsens.
Alireza Amini; Zohre Hejazi Azad
Volume 9, Issue 30 , April 2007, , Pages 137-163
Abstract
Labor force and its quality (human capital) have made large contribution to economic growth and development in many countries. Health is also considered as a way to improve both labor quality and productivity. Present research aims to investigate and analyze the effect of health on labor productivity ...
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Labor force and its quality (human capital) have made large contribution to economic growth and development in many countries. Health is also considered as a way to improve both labor quality and productivity. Present research aims to investigate and analyze the effect of health on labor productivity for the period 1976-2004.
The ARDL econometric model used in this study incorporates variables such as life expectancy as a proxy for health, per capita physical capital, and the actual to potential output ratio as the most influential factors on labor productivity.
The results indicate that about 38.2% of labor productivity growth is contributed by an increase in health. In addition, our result show that in fourth plan (2005-2009), labor productivity growth will be about 2% less than the figure envisaged in the plan.
Masoud Nili; Shahab Nafisi
Volume 7, Issue 25 , February 2006, , Pages 1-22
Abstract
Human capital is an important ingredient of the new growth theory and, therefore its estimation has become a vital element for the growth regression models. In spite of this importance, an estimation of human capital has not yet been made for Iran. In this paper, the average years of education of the ...
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Human capital is an important ingredient of the new growth theory and, therefore its estimation has become a vital element for the growth regression models. In spite of this importance, an estimation of human capital has not yet been made for Iran. In this paper, the average years of education of the labor force of Iran, as a proxy for the human capital, has been estimated for the period 1966-2000. Because of using labor force instead of the population, the real number of students instead of enrolment rates, and taking into account the elements such as changes in the education system in 1966-2000, immigration, mortality, unemployment rates, the current research provides a more reliable result than those obtained by using conventional methods like Barro and Lee (2000).
Reza Najarzadeh; Mehran Maleki
Volume 7, Issue 23 , July 2005, , Pages 147-163
Abstract
Capital is considered to be the engine of economic growth and development. Developing countries, however, are short of this pivotal factor of economic well beings. Until not too long ago these countries used to resort to borrowings from abroad to furnish this shortage. But in recent years, ...
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Capital is considered to be the engine of economic growth and development. Developing countries, however, are short of this pivotal factor of economic well beings. Until not too long ago these countries used to resort to borrowings from abroad to furnish this shortage. But in recent years, the developing countries have faced mounting foreign debts on one hand, and their inability to payoff these debts on the other hand. They are gradually being attracted to foreign investments. In this article, the impact of FDI on economic growth has been studied. The results indicate that FDI has a positive impact on the economic growth of the five countries under study (Indonesia, Malaysia, Venezuela, Saudi Arabia and Iran). Moreover, the degree of this impact is influenced by the quality of the human capital of each country. This fact holds not only for FDI but also for domestic investments as well.
Mojtaba Yousefi Dindarlo; Mohammad Noferesti
Volume 7, Issue 23 , July 2005, , Pages 193-219
Abstract
In the early years of 1960s, Schultz and Denison introduced the concept of human capital. Since then economists have analyzed the role of human capital on various economic variables. Education, experiment, and health are three main dimensions of human capital among which education is considered as the ...
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In the early years of 1960s, Schultz and Denison introduced the concept of human capital. Since then economists have analyzed the role of human capital on various economic variables. Education, experiment, and health are three main dimensions of human capital among which education is considered as the most important one. The educational dimension of human capital is known as educational attainment.
In this paper, after introducing different indexes, which have been used for educational attainment, we argue that average years of schooling is the most important index of educational attainment. By reviewing Barro’s method for calculating average years of schooling, and implementing essential changes needed for consistency with the Iranian educational system and the data, we develope a method for calculating the average years of schooling in Iran. We calculate average years of schooling of men and women, and also for four educational levels (elementary, guidance, secondary and higher education) for the period 1961 to 2001.
Masoud Nili; Shahab Nafisi
Volume 5, Issue 17 , February 2004, , Pages 1-31
Abstract
Economic theory suggests a causal and positive relationship between human capital and economic growth. Empirical findings, however, report an insignificant and even negative relationship between the two, for many cases. This has been explained by some researchers as a result of neglecting the educational ...
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Economic theory suggests a causal and positive relationship between human capital and economic growth. Empirical findings, however, report an insignificant and even negative relationship between the two, for many cases. This has been explained by some researchers as a result of neglecting the educational distribution of labour force. In this paper, the significance of this explanation has been examined for the case of Iran. We have shown that, while the relationship between human capital and economic growth is significant and positive, it is statistically improved when the educational distribution of labour force is added to the model.
According to our findings, policy should give more priority to primary and secondary education as opposed to higher education.
Masoud Sadeghi; Mostafa Emadzadeh
Volume 5, Issue 17 , February 2004, , Pages 79-98
Abstract
This paper focuses on human capital as a determinant of economic growth. In this article empirical evidences relating education to economic growth are examined. In the context of neoclassical growth models, i.e. as in Cobb-Douglas production function, human capital serves as an input to production. These ...
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This paper focuses on human capital as a determinant of economic growth. In this article empirical evidences relating education to economic growth are examined. In the context of neoclassical growth models, i.e. as in Cobb-Douglas production function, human capital serves as an input to production. These models expand on the neoclassical growth model of Solow, by allowing the output of a country to be an increasing function of its stock of human capital. It is shown that investment in education leads to increased output and therefore growth. Using an Ordinary Least Squares (OLS) regression function, we found that the production elasticities of the skilled labour, non skilled labor, and physical capital are respectively 0.21, 0.49 and 0.35 percentages. Our investigation concludes that schooling has a significant and substantial positive effect on productivity and GDP growth.
seyed komail tayebi; Shirin Arbabian
Volume 5, Issue 16 , October 2003, , Pages 1-22
Abstract
Technology and scientific knowledge developed by higher education play imperative role in the production process of manufacturing goods. Labor forces، in a higher level of education، are able to cause technological changes by which significant rises are occurred in commodity exporting capacity and ...
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Technology and scientific knowledge developed by higher education play imperative role in the production process of manufacturing goods. Labor forces، in a higher level of education، are able to cause technological changes by which significant rises are occurred in commodity exporting capacity and competitive ability in international markets. The present paper investigates the impact of higher education on Iran’s manufacturing exports، and it tests the hypothesis that improvement in higher education، particularly in long run، can influence positively the non-oil export supply. Specifying an empirical framework and then using data for the period 1966–1999، we employ the Johansen – Juselius co-integration method and Error Correction Model (ECM) to estimate، respectively، long-run and short-run determinants of Iran’s manufacturing export supply. Overall، estimation results obtained reveal the fact that there is a substantial significant flexibility of higher education coefficient in the long-run export model، whereas the correspondent short-run coefficient is not statistically significant. The implication is that the policy makers should consider enhancement in higher education as the human capital role in the promotion of Iranian non-oil exports.
