The impact of human capital on Total Factor Productivity Case study: Automotive Industry

Total Factor Productivity as a permanent source of dynamic and economic growth is influenced by several factors, Based on the theories of human capital as one of the most important factors affecting it be known. This study the relationship between human capital and productivity growth goal in the automotive industry is examined. In the present study Tornquist model was used to measure total factor productivity growth. To test the hypotheses, the member companies, 18 companies have been chosen in the period from 2007 to 2014, and the data are collected monthly and are examined by method of Panel Data by E-views 8 software. The results indicate that human capital have a significant positive impact on total factor productivity growth.