Authors
1 Assistant Professor, Shiraz University, Iran
2 M.A in Economics
Abstract
This study examines the impact of economic liberalization on employment in the industrial sector in Iran. In our model, the labour demand function in industrial sector is considered to be a function of real value added, real wage rate, real user cost of capital, and globalization indices. The ratio of exports to real value added, the ratio of imports to real value added, and the ratio of the sum of exports and imports to real value added are used as globalization or economic openness indices.
The Ordinary Least Squares (OLS) method is used to estimate the labour demand function for the period 1971-2003. The results indicate that except for the real wage rate, other variables have a positive and significant relationship with employment in industrial sector for the period under the study in Iran.
Keywords
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