The Impact of Human Capital on Manufacturing Industrie's Export

Regarding the importance and high proportion of Iranian Manufacturing Industrie's export in nonoil export basket, and their impact on economic growth, it is essential that effective factors on the Manufacturing Industrie's export be investigated. This paper investigates the impact of human capital on the export of Iranian industries, using a panel data set of 2-digit ISIC manufacturing industries, over the period 2000-2007. Using the number of workers with higher education degree (as a proxy for human capital), the results show that human capital, manufacturing value added and nominal exchange rate have positive and significant effects on the export of the manufacturing industries. In addition, the domestic demand of manufacturing goods and terms of trade have significant negative effects on these industries export. Therefore, any effort to expand the higher education is highly recommended.