Labour Share Production and the Effect on Economic Growth in Iran

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ABOUNOORI ESMAEIL; garmabi abolfazl

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Journal: Journal of Economic Research Year:2016 | Volume:51 | Issue:1 Page(s): 1-24

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Title

Labour Share Production and the Effect on Economic Growth in Iran

Author(s)

ABOUNOORI ESMAEIL | garmabi abolfazl | Issue Writer Certificate

Keywords

Functional Distribution of IncomeQ2

Labour ShareQ1

Economic GrowthQ2

IranQ1

Abstract

The recent economic crisis in Western World has increased the interrelationship importance of production factors share in Economic Growth. In recent years according to several evidences concerning instability in production, the subject of "Functional Distribution of Income" has found its place. Many analyst considered the relationship between Economic Growth and inequality from the "personal income distribution" point of views but the effect of labour factor share on Economic Growth have not received enough attention. In this paper the CES production function is used to analyses the effect of changes in labour production share on Economic Growth both theoretically and empirically. From the theoretical point of view it is shown that increase in capital production share resulting from decrease in Labour Share leads to reduction in Economic Growth rate. On the other hands, in a consumption-based society, increase in capital production share causing interest rate increase, induces reduction in saving rate and this reduces the Economic Growth rate. Based on empirical study observing Iranian economy during 1370-1390 (1991-2011) does not reject the hypothesis.

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APA: Copy

ABOUNOORI, ESMAEIL, & garmabi, abolfazl. (2016). Labour Share Production and the Effect on Economic Growth in Iran. TAHGHIGHAT-E-EGHTESADI, 51(1 ), 1-24. SID. https://sid.ir/paper/11685/en

Vancouver: Copy

ABOUNOORI ESMAEIL, garmabi abolfazl. Labour Share Production and the Effect on Economic Growth in Iran. TAHGHIGHAT-E-EGHTESADI[Internet]. 2016;51(1 ):1-24. Available from: https://sid.ir/paper/11685/en

IEEE: Copy

ESMAEIL ABOUNOORI, and abolfazl garmabi, “Labour Share Production and the Effect on Economic Growth in Iran,” TAHGHIGHAT-E-EGHTESADI, vol. 51, no. 1 , pp. 1–24, 2016, [Online]. Available: https://sid.ir/paper/11685/en

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