Income Convergence in Iranian Regions

Christian Dreger, Teymur Rahmani and Hans-Friedrich Eckey
Additional contact information
Teymur Rahmani: Assistant Professor
Hans-Friedrich Eckey: Eckey: University of Kassel

Iranian Economic Review (IER), 2009, vol. 14, issue 2, 51-69

Abstract: The neoclassical growth model predicts convergence of productivity or per capita output levels across regions. We investigate this hypothesis for the Iranian economy using data on demand deposits as a proxy for GDP. Moreover, the analysis investigates the effects of rent-seeking on the convergence process. In contrast to previous papers, the analysis shows robust evidence in favour of both sigma and beta convergence across the Iranian provinces and provide some indications on the adverse effect of rent-seeking on regional convergence.

Keywords: Regional convergence; economic growth; rent-seeking. (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:14:y:2009:i:2:p:51

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