Decomposition of Factors Affecting Changes in Industrial Employment in Sistan ‎and Baluchestan Province (LMDI Method)‎

Document Type : applicative

Authors

1 Master of Economics. Faculty of Economics and Administrative Sciences. University of Sistan and Baluchestan. Zahedan. Iran.

2 Associate Professor, Department of Economics. Faculty of Economics and Administrative Sciences. University of Sistan and Baluchestan. Zahedan. Iran.

10.30473/jier.2025.74465.1494

Abstract

This study examines the factors affecting employment changes in the industrial sector of Sistan and Baluchestan Province during 2017-2021 using the Logarithmic Mean Divisia Index. Based on this method, employment changes in the industrial sector of the province were decomposed into three factors: changes in employment coefficients, changes in production volume, and structural changes in production. The results of the model showed that the effect of production volume was positive in all four periods under study and contributed to the increase in employment in the industrial sector of the province. Meanwhile, the effect of this factor in the two sectors of food industry and machinery industry has played a more prominent role than in other industrial sub-sectors of the province and has increased the employment of these sectors to a greater extent. The increase in employment in the province's industrial sector in the 2010-2011 period was 90 people and 201 people in the food industry and machinery sectors, respectively. The effect of changing employment coefficients in all four periods under study was negative and led to a decrease in employment in the total industrial sector of the province. Also, the effect of the industrial production structure in two period was negative and led to a decrease in employment in the total industrial sector. Based on the results, it is suggested that appropriate planning be made to increase the volume of industrial production in the province, as well as the structure of industrial production towards sectors that have higher employment generation.

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Main Subjects

Journal of Industrial Economics researches
Volume 8, Issue 30
February 2026
Pages 15-24

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History

  • Receive Date: 03 May 2025
  • Revise Date: 13 June 2025
  • Accept Date: 16 June 2025

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