Authors

• Hassan Sobhani ¹
• Hamid Azizmohammadloo ²

¹ Associate Professor of Economic Faculty, Tehran University, Tehran, Iran

² M.S in Economics

Abstract

Investment is perceived as a major factor in job creation in almost all sectors of the economy and by the policymakers.  In this paper, we investigate if investment has the same effect on the job creation in all the Iranian manufacturing sub-sectors using the data with two-digit ISIC codes.
   Research findings reveal that the first to fifth strongest effects are among the “textile, wearing apparel and leather products", "wood and products of wood", "food, beverage and tobacco products", "machinery, equipment and metal instruments products", and "non- metallic mineral products", respectively. As for the "basic metal", "chemical products" and "paper, publishing and printing ", there is no significant statistical relationship between investment and employment.

Keywords

• investment
• Employment
• Manufacturing
• Labor Demand Function
• Vector Autoregressive Model
• Vector error correction model