Banking Development, Social, Economic Structure and Income Inequality (Case Study of Iranian Provinces)

Mohammad Hasan Vakili Zarch (), Abbas Alavi Rad (), Jalil Totonchi () and Mohammad Ali DehghanTafti ()
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Mohammad Hasan Vakili Zarch: Ph.D. Candidate, Department of Economics, Yazd Branch, Islamic Azad University, Yazd, Iran
Abbas Alavi Rad: Associate Professor, Department of Economics, Yazd Branch, Islamic Azad University, Yazd, Iran
Jalil Totonchi: Assistant Professor, Department of Economics, Yazd Branch, Islamic Azad University, Yazd, Iran
Mohammad Ali DehghanTafti: Assistant Professor, Department of Economics, Yazd Branch, Islamic Azad University, Yazd, Iran

Quarterly Journal of Applied Theories of Economics, 2021, vol. 7, issue 4, 139-166

Abstract: In the present study, the effects of banking development, social, economic structure and income inequality in the provinces of the country during the period 1395-1385 and using the (GMM) and (2SLS) model were investigated. According to the results of model estimation; Unemployment and trade are positively related to income inequality. Also, the increase in GDP per capita improves the share of the total labor force working in agriculture, production and construction, and income distribution in the provinces of the country. However, the small coefficient of these variables indicates their partial effect on income distribution. The negative sign of the interruption of inequality in the distribution of provincial income also indicates an increase in income divergence between the northern and southern provinces. Under these circumstances, modern investment, growth and technology resources are concentrated in a few industrial provinces, and many central provinces, which do not share borders with other countries, are deprived of the growth process or participate in it marginally, which often contradicts It is in their interests. Increasing competition and the number of bank branches also improves income distribution, although the impact of increasing these two variables indicates the greater importance of the banking sector in using efficient technologies and increasing the number of bank branches to improve economic justice in the provinces. Therefore, more equitable growth and distribution of income should be in close interaction and relationship with each other, and therefore ("growth with redistribution") and "growth with more equality" should be on the agenda of the country's planners

Keywords: Banking Development; Social; Economic Structure and Income Inequality; GMM Model; 2SLS Model (search for similar items in EconPapers)
JEL-codes: C33 C36 D31 F43 (search for similar items in EconPapers)
Date: 2021
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