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Learning Intensity and Its Effects on Performance of Iranian Manufacturing Industries

Author

Listed:
  • Norani Azad , Samaneh

    () (Assistant Professor of Economics, Payame Noor University)

  • Khodadad Kash, Farhadi

    () (Professor of Economics, Payame Noor University)

Abstract

In this paper learning intensity refers to cost-saving of labor force and productivity growth that associate with experience. This process measured by using learning curve. Moreover, this article sought to examine the effects of learning rate in Iran’s manufacturing industries performance. To meet this ends the data of 130, 4-digit industries over the periods of 1996-2013 were used to identify learning effects and the extent of cost advantage of labor force owing to increased experience. The results indicated that the learning curve in all sub-sectors of industry had a negative slope as expected. Also, there was different learning rate in sub-sectors of industry, so that differences of learning rate coefficient led to increased productivity and reduced the cost of production. Of course in the majority of industries this coefficient was less than the average intensity of learning in industrial sector. In addition, similar to other variables, the effect of learning intensity on profitability was positive and significant in Iranian industries. Also, further investigation showed that in industries with high added value, due to the use of superior technology, learning rate was higher than the average intensity of learning in Iran’s industries.

Suggested Citation

  • Norani Azad , Samaneh & Khodadad Kash, Farhadi, 2017. "Learning Intensity and Its Effects on Performance of Iranian Manufacturing Industries," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 4(1), pages 173-196, May.
  • Handle: RePEc:ris:qjatoe:0070
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    More about this item

    Keywords

    Learning intensity; Profitability rate; Productivity of labor force; Panel Data;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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