Volume 20, Issue 4 (2020)
QJER 2020, 20(4): 157-175 |
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Haji G, keyhanihekmat R, Najafizadeh S A, Mehregan N. Government Expenditure and Regional Growth in Iran (Spatial Econometrics Approach). QJER 2020; 20 (4) :157-175
URL: http://ecor.modares.ac.ir/article-18-48189-en.html
URL: http://ecor.modares.ac.ir/article-18-48189-en.html
1- Assistant Professor, Department of Economics, Islamic Azad University, Arak Branch
2- Ph.D. Candidate in Economics, Department of Economics, Islamic Azad University, Arak Branch
3- Assistant Professor, Department of Economics, Islamic Azad University, Arak Branch ,abbnaj@iau-arak.ac.ir
4- Professor of Economics, Bu-Ali Sina University, Hamedan, Iran
2- Ph.D. Candidate in Economics, Department of Economics, Islamic Azad University, Arak Branch
3- Assistant Professor, Department of Economics, Islamic Azad University, Arak Branch ,
4- Professor of Economics, Bu-Ali Sina University, Hamedan, Iran
Abstract: (3334 Views)
This study attempts to investigate the effect of government spending on regional growth in Iran. The relationship between government spending and economic growth is one of the well-known topics in economic literature. One of the problems of developing countries is the failure to achieve sustainable economic growth, which not only causes economic problems such as recession and unemployment, but also cultural, political and social problems. The government economic stabilization policies can be used to narrow the gap between the potential and realized product and to maintain the product near its potential level. One key issue in the field of regional planning is to study and understand the geographical inequalities in different dimensions. In this paper, using the spatial econometric method, the relationship between government spending and regional growth is estimated by applying the regional data of Statistical Center of Iran during 2001-2017, and Excel and R software’s are used to perform the calculations. This study seeks to explain the growth of different regions using government spending, and to answer these questions: Does government spending have a significant effect on growth in the regions? Do the regions converge in terms of economic growth over time? The results indicate the negative effect of government spending, population growth and human capital on regional growth in Iran. In addition, the statistical significance of spatial correlation coefficient indicates the positive diffusion effects of regional economic growth.
Subject:
Economics and Econometrics
Received: 2020/12/6 | Revised: 2020/12/7 | Accepted: 2020/12/20 | Published: 2020/12/20
Received: 2020/12/6 | Revised: 2020/12/7 | Accepted: 2020/12/20 | Published: 2020/12/20
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