The Impact of Human Capital on Iranian Medium and Large Manufacturing Companies' Export

Document Type : Original Article

Authors

1 Tabriz University, Faculty Member

2 Tabriz University, M.A. Student

Abstract

The role of human capital on industrial export and through that on economic growth is clear. This role is recently more highlighted in Iran by starting the rule of subsidy targeting. This paper investigates and compares the impact of human capital on the export of Iranian medium and large manufacturing companies, using a panel data set of two-digit ISIC manufacturing industries, for the period 2000-2006. For that purpose, we use the number of workers with higher education degree (as a proxy for human capital) to examine the effect of human capital on the export of Iranian medium and large manufacturing companies.
The results of the study show that human capital as well as manufacturing value added have positive and significant effects on the export of both of medium and large manufacturing companies, eventhough  these effects are bigger for large companies. Also, the price indices, such as terms of trade and real exchange rate show weak or no significant effects. Therefore, any effort to expand the higher education is highly recommended.

Keywords


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