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Investigating the Effects of Different Kinds of Infrastructures on Income Distributions of Provinces in Iran: A Generalized Method of Moment Approach

Mansour Khalili Araghi (), Mahboobeh Kabiri Renani () and Elham Nobahar ()
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Mansour Khalili Araghi: Professor of Economics, University of Tehran
Mahboobeh Kabiri Renani: Ph.D. in Economics, University of Tehran
Elham Nobahar: Assistant Professor of Economics, University of Tabriz

Quarterly Journal of Applied Theories of Economics, 2018, vol. 4, issue 4, 119-142

Abstract: One of the main subjects, all governments are facing is the just distribution of income, and trying to improve it; because of the consequence of unjust distribution of income studying different aspect of it is very important. In this regard, we have studied the effects of different kinds of infrastructure; economic (energy, water, ICT), social (health, education), on the inequality of the Iranian provinces for the period of 2006-2016. We have used the Dynamic Panel Data and GMM models. The results show that enhancement of social and economic infrastructures will reduce the inequalities. According to research findings, the increase in social and economic infrastructures has reduced the income inequality in society. As infrastructure of healthcare, information and communication technology, energy and water have the most impact on income inequality, respectively. Therefore, in order to reduce inequality in deprived areas, the combination and optimal allocation of economic and social infrastructures should be considered.

Keywords: Economic and social infrastructures; Inequalities; Dynamic Panel; GMM. (search for similar items in EconPapers)
JEL-codes: C23 H54 O15 R58 (search for similar items in EconPapers)
Date: 2018
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