Determinants of Growth Rate of Industrial Production in Iran (1996-2011)

Industries are one of the most important economic sectors and their growth causes industrial and economical development.There are some important and effective factors which imporve the industrial production growth and the value added of enterprises, such as: Skilful and experienced labor, modern machineries and advanced technology. The important aim of this research is the study of the physical capital, skilful and unskilful labor impact on industrial growth, using Solw's augmented growth for the period of 1996-2011.The results show the effects of simple and skilful labors and physical capital on value added of Iran's industries are positive and significant. Of course, the effect of skilful resources (human capital) are more than the unskilful labors. Thus, the value added of industries of Iran can be increased by the improvement of technical knowledge of human resources.