The Journal of Economic Studies and Policies

The Journal of Economic Studies and Policies

Innovation and Its Effect on Employment: a Case Study of Selected Countries of Organization of the Islamic Conference Countries

Document Type : Original Article

Authors
Abolfazl Shahabadi 1
Behzad Amiri 2
1 Associate Professor, Faculty of Economics and Social Sciences, Bu Ali Sina University
2 PhD Student in Economic Development, Faculty of Economics and Social Sciences, Bu Ali Sina University
10.22096/esp.2013.26117
Abstract
Reducing unemployment always has been one of the most important objectives of economic systems and governments and determining factors affecting on unemployment is of particular importance. One of these factors is innovations. Some believe that the impact of innovation on employment due to increased productivity by innovation will increase unemployment rate. Some have emphasized the positive role of innovation on employment. With regard to the effects, the innovation affects through compensating channels such as reducing the price of products, new investments, increase in income and introducing new productions. In this regard, the goals of this paper is to investigate the impact of innovation on employment in selected countries of OIC (Organization of the Islamic Countries) during the period 1990 – 2009 with using unbalanced panel data method. Results showed significant and positive effect of innovation on employment level OIC countries. The results also show the effect of imports, information and communication infrastructure variables on employment are positive and significant.  Also, the effect of investment and wage variables are non-significant on employment level.
Keywords
Innovation
employment
Organization of the Islamic Countries
the Unbalanced Panel Data Method

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