Technology and Employment Growth Syndrome in Iran: The Case of Manufacturing Industry

Document Type : Original Article

Authors

1 Ph.D Candidate in Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

2 Associate Professor of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

3 Assistant Professor of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

Abstract

The average economic growth rate of Iran over the past four decades has been a positive number; Meanwhile, the unemployment rate has risen on the average over the past four decades. Therefore, the main issue in this study is that the employment rate has not been increased in proportion to the economic growth rate. For this purpose, first, using the pathological method of employment growth, the challenge of growth associated with employment has been investigated. One of the most important constraints on job growth is the technology factor. Then, using quantitative regression quantitative method and data related to technology index, employment growth elasticity index and sustainability index in technology improvement, the effect of technology on employment growth elasticity during the period 1990:1-2020:4, has been investigated. The results show that in the primary deciles, the impact of technology and sustainability in technology improvement on employment elasticity is higher than in the final deciles. Also, in recent years, with the improvement of technology, production has increased, and employment has decreased. Therefore, in addition to improving technology, the issue of adapting the labor force through training and skills enhancement channels with technology changes should be considered and emphasized.

Keywords

References

- Akhbary, R., & Amadeh, H. (2016). Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran. Economics Research, 15(59), 57-94. (In Persian).
- Babych. Y. & Fuenfzig. M. (2012). An Application of the Growth Diagnostics Framework: The Case of Georgia, working paper, 67-89.
- Falahati. A., Khanzadi. A. &  Yasemi. K. (2019). Investigating the effects of industrial overflow on unemployment in Iranian provinces. Quarterly Journal of Economics and Modelling, 10(37), 187-209 (In Persian).
- Hausmann, R. & Klinger, B. (2008). Growth Diagnostics in Peru, Center for International Development, Harvard University, Working Paper No. 181.  
- Hausmann, R., Rodrick, D. & Vlasco. A. (2005). Growth Diagnostics. Manuscript, Inter-American Development Bank.
- Hausmann, R. & Rodrick, D. (2003). Economic Development as selfdiscovery. Journal of Development Economics, 72, 603-633.
- Hausmann, R., Bailey, K. & Rodrigo, W. (2008). Doing Growth Diagnostics in Practice: A Mindbook, CID Working Paper No. 177, September, Center for International Development: Harvard University.
- Huijuan, W., Lin, D., Rong, G. & Yan, X. (2020). Effects of advancing internet technology on Chinese employment: a spatial study of inter-industry spillovers. Technological Forecasting & Social Change, 161, 1-9.
- Han J-S. & Lee J-W. (2019). Demographic Change, Human Capital, and Economic Growth in Korea, Japan and amp. The World Economy. Journal Pre-proof. 1-49.
- Izadkhasti, H., Javaherdehi, S. & Abdollahi, M. (2018). Analysis of Macroeconomic Factors Affecting Unemployment in Iran's Provinces: With Emphasis on Cost Credits and Acquisition of Capital Assets Ownership. Journal of Economics and Modeling, 8(32), 1-30 (In Persian).
- Kwong, M. & Ronnås, P. (2011). Employment diagnostic analysis: Nusa Tenggara Timur, Indonesia. Employment Working Paper No. 95 (Geneva, ILO Employment Sector).
- Klinger, S. & Weber. E. (2019). GDP-Employment Decoupling in Germany. Structural Change and Economic Dynamics. 52(C), 82-98.
- Ma’te’, D. (2010). A Theoretical and Growth Accounting Approach of Jobless Growth. Periodica Oeconomica, 2010, 67-76.
- Rodrik. D. (2010). Diagnostics before Prescription. Journal of Economic Perspectives, 24(3), 33-44.
- Rodrik, D. (2013). The Why and How of Growth Diagnostics”. Presentación. Washington D.C., Septiembre.
- UgochukwuO, A. & Chijioke, J.E. (2015). Binding Constraints to Inclusive and Job-Rich Growth in Nigeria: A Review of Macro and Sector Policies and Strategies. International Laboure Organization.
- Vivarelli, M. (2013). Skill-biased technological change and skill-enhancing trade in Turkey: evidence from longitudinal microdata. IZA Discussion Paper No. 7320.
- Williamson, J. (2005). Differing Interpretations of the Washington Consensus. Warsaw: Leon Kozminski academy entrepreneurship and management (WSPiZ) and TIGER distinguished lectures series N. 17

Files

Share

How to cite

Statistics