Investigating the long-run relationships between labor, population, and GDP in Iran: The Cobb-Douglas production function model

Document Type : Original Research Paper

Authors

1 PhD student, department of Population, Faculty of the Prophet, Imam Hussein University, Tehran, Iran

2 PhD student, Department of Resistance Economics, Faculty of Economics, Imam Hossein University, Tehran, Iran

Abstract

Objective: This study aims to examine the effects of labor, population, and capital on Iran's Gross Domestic Product (GDP). In this regard, the long-term and short-term relationships between these variables were analyzed, and the contribution of each to the country's economic growth was determined.

Methodology: This research utilized the Autoregressive Distributed Lag (ARDL) model and the Cobb-Douglas production function. The data were analyzed using EViews software, and a cointegration test was employed to evaluate the long-term relationships among the variables.

Findings: The results indicate that labor has a significant and positive impact on GDP, where a 1% increase in labor leads to a 1.02% growth in GDP. Capital also has a positive but smaller effect, with a 1% increase in capital resulting in a 0.13% growth in GDP. The impact of population is also positive but less significant than labor.

Conclusion: The cointegration test revealed that labor, capital, and population have a long-term relationship with GDP. These findings highlight the importance of policymakers focusing on strengthening the labor force, targeted investments, and optimal utilization of the population to achieve sustainable economic growth.

Keywords

References

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Governance of Population and Family
Volume 2, Issue 3 - Serial Number 5
September 2024
Pages 105-115

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History

  • Receive Date: 11 December 2024
  • Revise Date: 18 January 2025
  • Accept Date: 01 September 2025
  • Publish Date: 23 September 2025

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