Analysis of the Impact of Production Factors on Employment in Iranian Air Transport Industry

Air transport is one of fundamental sub-sectors of transport services, which has a high value added and novel technologies. On the other hand, due to the importance of employment, this article examines the effects of factors of production on employment in the Iranian air transport industry. For this purpose, the CES function has been used to examine employment. Workforce is introduced as dependent variable and value added, wage and capital price are considered as independent variables in the model. Research period - years 1382 to 1397 (2003 to 2018) is considered as time series for the extracted data of the air transport industry of Iran and the mentioned Econometrics model is estimated by Autoregressive distributed lag model (ARDL( and with a boundary test approach. Boundary test result, confirms correlation among the variables, which shows long-term relationship between the research variables and this is interpretable. Result of the long term model estimation shows that the estimation index for the variables (value added, wage and capital price) are statistically meaningful and their values are 0.16, 0.62 and -0.23, respectively. Result of the long term model estimation shows that the estimation index for the variables (value added, wage and capital price) are statistically meaningful and their values are 0.16, 0.62 and -0.23, respectively.