Investigating the Convergence Clubs among Provinces of Iran during 2000-2009

Gholami Heydariani, Leila; Ranjpour, Reza; Motafaker Azad, Mohammadali; Karimi Takanloo, Zahra

Investigating the Convergence Clubs among Provinces of Iran during 2000-2009

Authors

Leila Gholami Heydariani ¹

Reza Ranjpour ²

Mohammadali Motafaker Azad ³

Zahra Karimi Takanloo ⁴

¹ M.A. in Economic Development and Planning (Corresponding Author), E-mail: leilagholami65@yahoo.com

² Assistant Professor of Economics, University of Tabriz, E-mail: reza.ranjpour@gmail.com

³ . Professor of Economics, University of Tabriz, E-mail: motafaker@tabrizu.ac.ir

⁴ . Assistant Professor of Economics, University of Tabriz, E-mail: zkarimi1355@yahoo.com

Abstract

The convergence hypothesis is a result of the neoclassical growth model. By definition, the concept of convergence is the faster growth of regions (economies) with lower per capita income compared to the regions (economies) with higher per capita income. This paper deals with convergence clubs among provinces of Iran during 2000-2009. For this purpose, the Panel unit root tests have been used to examine the convergence hypothesis after classifying the provinces with cross-sectional methods. The research results show that Iran’s provinces can be classified into two groups of provinces: (1) ones with low per capita income (18 provinces) and (2) ones with high per capita income (12 provinces). According to the panel unit root tests, the existence of absolute convergence (tendency to a certain standard) between two mentioned groups is confirmed. So, the convergence clubs hypothesis is verified among the Iran’s provinces.

Keywords

Convergence Club

Iran's economy

Regional Accounts

Per Capita Income

Panel Unit Root Tests

20.1001.1.17356768.1393.14.3.9.2

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