Spatial Structure and Income Inequality in Iranian Provinces: A Cluster-Based Analysis of Complex Relationships

Ali Khodabandeh and Mojtaba Shahabi Shahmiri
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Ali Khodabandeh: University of Tehran
Mojtaba Shahabi Shahmiri: University of Tehran

No 2025-12, Discussion Paper series in Regional Science & Economic Geography from Gran Sasso Science Institute, Social Sciences

Abstract: This study investigates the complex relationship between spatial structure and income inequality across Iran's 31 provinces, aiming to move beyond linear and simplistic analyses. The methodology is based on a two-stage quantitative approach: first, four key indicators—urban primacy, polycentricity, the Gini coefficient, and an expenditure dispersion index—were calculated for each province. Second, K-Means cluster analysis was used to classify provinces based on their spatial economic profiles. The findings reveal that no universal link exists between spatial form and inequality, uncovering several distinct patterns: 1) The Dominant Metropolis model (Tehran and Alborz), where extreme spatial concentration is coupled with acute inequality; 2) The "Polycentricity Paradox," where a similar spatial form leads to two contrasting outcomes: "efficient polycentricity" with low inequality (e.g., Kurdistan) and "inefficient polycentricity" with high inequality (e.g., Sistan and Baluchestan); and 3) The "Industrial Multi-Polar" model (Khuzestan), where a balanced spatial form coexists with high income inequality. The main conclusion is that physical form alone does not determine socio-economic outcomes; rather, the "functional quality" and "degree of integration" of the urban network are far more decisive. These findings underscore the need for context-specific regional policies focused on strengthening economic linkages between cities instead of merely engineering spatial form.

Keywords: Income Inequality; Spatial Structure; Urban Primacy; Polycentricity; Cluster Analysis; Iran. (search for similar items in EconPapers)
JEL-codes: C38 D63 R12 R23 R58 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2025-02, Revised 2025-02
New Economics Papers: this item is included in nep-ara, nep-geo and nep-uep
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