Investigating the Effects of Financing, Human Capital, and Research and Development on the Value-Added of Iran's Industrial Sector using the Panel Quantile Approach

This study attempts to quantify the impact of various factors on the value-added distribution quantiles of 24 ISIC codes for industrial factories in Iran. It examines the impact of the variables human capital index, rental price index, R&D index, financing index, number of employees of industrial factories, number of industrial factories, and economic openness index on the value-added of Iran’s manufacturing industries from 2002 to 2019 using the panel quantile model. According to the findings of the study, the funding index has a greater impact on small- and medium-sized enterprises, but economic openness has a lesser impact on these companies. In addition, the rent index, human capital index, and R&D index have had the most significant impact on the value-added of larger enterprises. Based on these findings, the facilitation of the financing process, particularly for small and medium-sized businesses, has resulted in an increase in the value-added of these companies, and in light of the lesser effectiveness of these enterprises, as measured by the economic openness index, against sanctions and currency shocks, it increases the economy’s resilience to a certain amount.