Role of Openness and Taxes on Employment Performance in Iran and Selected Developing Countries

One of the key issues in economics is the appropriate mobilization of skills and talents of human resources in a society. Employment plays a crucial role in the dynamism of a person’s life, and it can be viewed as the focal point of human and social relations. Policy makers and economic analysts in financial are trying to find solutions for increasing and improving employment. In this regard, the aim of this study is to investigate the role of openness and taxes on employment performance in Iran and selected developing countries. Hence, the model is evaluated using panel data for selected developing countries over the period 2005-2012. The results show that the tax has a significant negative effect on employment, so that a 1% increase in the amount of employment is reduced by 0.04 percent. Also openness and manufacturing value added have positive impact and exchange rates has a negative impact on employment.