Estimating the Effects the Human Capital on the Economic Growth of the Road Transport Sector (Using the Cobb-Douglas Production Function)

In Iran, the road transport has a greater share than other modes in displacing goods and passengers and is of great importance; therefore, improved management and manpower in this sector can accelerate its growth. Today, all executive managers are trying to assess the costs and benefits of investing in human resources; some have employed the production function method and tried to estimate the extra production generated by more training. Accordingly, the production function analysis attempts to answer this question, as the hypothesis of this paper, “How much is the share of more training in the production or the economic growth of the road transport sector?” This paper studies the share of the manpower in the economic growth of the road transport sector and proposes, through using the estimated results, suitable approaches while presenting an appropriate theoretical framework that includes the training factor. Hence, the Cobb-Douglas production function has been used to study such parameters as the capital stock, human capital, and the employed labor force as independent variables. Next, the production function has been estimated separately for the share of different production factors during 1994-2014 and each factor's elasticity has been estimated as regards the value added of the road transport sector. For estimations, use has been made of the ordinary least squares (OLS) method. According to the Cobb-Douglas production equation, the production elasticities of the capital stock, freight/passenger vehicles' drivers having high-school diploma/higher, and employed labor force of the road transport sector (literate/illiterate) were 0.17, 0.05, and 0.14, respectively. Results of the above estimation of the human capital imply that: 1) the human capital is a stable and meaningful factor with positive coefficient and 2) investing in the human capital through training will develop their capabilities, skills, and experiences that are of special importance for achieving sustainable economic growth and development.

• Record URL:
  https://pre-proceedings-abudhabi2019.piarc.org/ressources/files/2/IP0415-Rezaee-Arjroody-E-Full.doc.pdf
• Supplemental Notes:
  • Abstract reprinted with permission of the World Road Association – PIARC.
• Corporate Authors:

  World Road Association (PIARC)

  La Grande Arche, Paroi Nord, Niveau 5
  F-92055 La Defense Cedex,   France 
• Authors:
  • Arjroody, A Rezaee
  • Mahpour, A
  • Hamdollahii, M
  • Nazifi, A
• Conference:
  • 26th World Road Congress
  • Location: Abu Dhabi , United Arab Emirates
  • Date: 2019-10-6 to 2019-10-10
• Publication Date: 2019

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References;
• Pagination: 8p
• Monograph Title: Proceedings of the 26th World Road Congress - Abu Dhabi - 2019: Connecting Cultures - Enabling Economies

Subject/Index Terms

• TRT Terms: Deployment; Economic capital; Economic growth; Highway transportation; Human resources management; Persons by educational level; Productivity; Training; Truck drivers; Workforce
• Geographic Terms: Iran
• Subject Areas: Economics; Education and Training; Freight Transportation; Safety and Human Factors;

Filing Info

• Accession Number: 01753774
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 29 2020 11:19AM