The Role of Human Capital in Manufacturing Industries of Northern Khorasan Province (With Emphasis on Large Industries)

The main purpose of this research is to study how and in which amount, human capital can impact on output of industrial workplaces that contain higher than 10 employees in northern Khorasan province in cross-section data for 1384. For this purpose after considering theoretic and empirical bases of human capital and current situation of industries in northern Khorasan province, the estimation of production function of Cobb-Douglas is implemented. Since, human capital index is considered as a qualitative variable, so educated and skilled workforce as a human capital variable are considered. Results show that Cobb- Douglas production function explains industrial production in northern Khorasan province very good and matched variables with human capital have a positive impact on a value-output of industries production of northern Khorasan province.