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.

Keywords

Main Subjects

References

Aderemi, T., A. Omitogun, O., & Oisanwo, B. (2022). Effect of FDI Inflows on Employment Generation in Selected ECOWAS Countries: Heterogeneous Panel Analysis. CBN Journal of Applied Statistics, 13(1), 241-263.
Chivu, I., et al. (2023). Industrial Structure, Employment Structure and Economic Growth. MDPI
Jude, C., & Silaghi, M. I. P. (2016). Employment effects of foreign direct investment: new evidence from Central and Eastern European countries. International Economics, 145, 32-49.
Kazemi Naeini, Sh. (2020). The effects of foreign direct investment on employment generation in Iran [Master’s thesis, Islamic Azad University, Khorasgan Branch].
Li, K., Ang, B. W., & Zhang, L. (2011). Decomposition analysis of CO₂ emissions in China: 1995–2009. Energy Policy, 39(9), 5485-5493
Molaei, M., & Ashtiani, M. (2012). Estimation of labor demand function in Iran’s industrial sector (1979–2003). Economic Research Journal, 12(2), 45-64.
Piva, M., & Vivarelli, M. (2018). Is innovation destroying jobs? Firm-level evidence from the EU. Sustainability, 10(4), 1279. https://doi.org/10.3390/su10041279
Pormehr, Sh., Bagheri, Sh., Khoshdeli, F., & Sarzaeim, A. (2019). The relationship between employment and value-added in Iran's industrial sector using temporal decomposition analysis. Quarterly Journal of Economic Research, 9(32), 1-20.
Haji Amini, M., & Kafiri, A. (2018). Evaluating employment and unemployment changes during Iran’s fourth and fifth development plans: A complete decomposition approach. Iranian Economic Issues, 5(2), 29-52.
Heidari, H., & Rezagholi, H. (2020). Estimating employment intensity resulting from economic growth in Iran’s industrial sector by different levels. Journal of Industrial Economics Research, 3(10), 39-56.
Hosseini, S. S., & Bakhshi, M. R. (2020). Analysis of money demand in Iran: Application of the autoregressive distributed lag model. Iranian Journal of Economic Research, 8(28), 1-13.
Hosseinzadeh, R. (2024). The impact of changes in investment volume and composition on production and employment in Iran. Development and Capital, 9(1), 101-116.
Hosseinzadeh, R., Keshavarz, H., & Saadatipour, M. (2023). The effect of foreign direct investment on employment in Iran’s provinces: Emphasizing interregional spillovers. Quantitative Economics.
Wang, J. and Zhang, H. (2005). An Empirical Study of Effect of Foreign Direct Investmenton China’s Employment. World Economy Study, 9.
Journal of Industrial Economics researches
Volume 8, Issue 30
February 2026
Pages 15-24

Files

History

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

Share

How to cite

Statistics