Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran

One of the main goals of economic policy-makers is to realize a fair and proper distribution of income in society. Regarding the importance of this issue in Iran and the unfavorable situation of income distribution indicators in its provinces, this study attempts to investigate the relationship betw...

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Main Authors: Elham Nobahar, Hossein Panahi, Zahra Mehri
Format: Article
Language:fas
Published: Institute for Management and Planning Studies 2023-05-01
Series:برنامه‌ریزی و بودجه
Subjects:
Online Access:http://jpbud.ir/article-1-2119-en.pdf
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author Elham Nobahar
Hossein Panahi
Zahra Mehri
author_facet Elham Nobahar
Hossein Panahi
Zahra Mehri
author_sort Elham Nobahar
collection DOAJ
description One of the main goals of economic policy-makers is to realize a fair and proper distribution of income in society. Regarding the importance of this issue in Iran and the unfavorable situation of income distribution indicators in its provinces, this study attempts to investigate the relationship between income inequality, urbanization, and economic growth in the provinces of Iran for the period of 2006-2019. Accordingly, to study such a relationship, two approaches have been conducted; First, the causal relationship between income inequality, urbanization, and economic growth was investigated using the method of Dumitrescu-Hurlin (2012). Then, to complete the discussion and determine the impact of urbanization variables and GDP on income inequality, the income inequality model was estimated by considering the spatial structure and accounting for two variables of urbanization and GDP per capita and several control variables using the spatial econometric approach. The results of the Dumitrescu-Hurlin causality test indicate the existence of a one-way causal relationship from urbanization to income inequality and the existence of a two-way causal relationship between GDP and income inequality in the Provinces of Iran. The results of estimating the model using the spatial panel approach show that the variables of urbanization rate, GDP per capita, and literacy are the most important variables affecting the income inequality of the provinces of Iran.
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spelling doaj.art-fae84088f40646a39815f37c4abe0aab2023-08-27T09:11:31ZfasInstitute for Management and Planning Studiesبرنامه‌ریزی و بودجه2251-90922251-91062023-05-0128197122Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of IranElham Nobahar0Hossein Panahi1Zahra Mehri2 Department of Economics, Faculty of Economics and Management, University of Tabriz, Iran. Department of Economics, Faculty of Economics and Management, University of Tabriz, Iran. Faculty of Economics and Management, University of Tabriz, Tabriz, Iran. One of the main goals of economic policy-makers is to realize a fair and proper distribution of income in society. Regarding the importance of this issue in Iran and the unfavorable situation of income distribution indicators in its provinces, this study attempts to investigate the relationship between income inequality, urbanization, and economic growth in the provinces of Iran for the period of 2006-2019. Accordingly, to study such a relationship, two approaches have been conducted; First, the causal relationship between income inequality, urbanization, and economic growth was investigated using the method of Dumitrescu-Hurlin (2012). Then, to complete the discussion and determine the impact of urbanization variables and GDP on income inequality, the income inequality model was estimated by considering the spatial structure and accounting for two variables of urbanization and GDP per capita and several control variables using the spatial econometric approach. The results of the Dumitrescu-Hurlin causality test indicate the existence of a one-way causal relationship from urbanization to income inequality and the existence of a two-way causal relationship between GDP and income inequality in the Provinces of Iran. The results of estimating the model using the spatial panel approach show that the variables of urbanization rate, GDP per capita, and literacy are the most important variables affecting the income inequality of the provinces of Iran.http://jpbud.ir/article-1-2119-en.pdfincome inequalityeconomic growthurbanizationdumitrescu-hurlin causality testspatial panel model.
spellingShingle Elham Nobahar
Hossein Panahi
Zahra Mehri
Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran
برنامه‌ریزی و بودجه
income inequality
economic growth
urbanization
dumitrescu-hurlin causality test
spatial panel model.
title Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran
title_full Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran
title_fullStr Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran
title_full_unstemmed Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran
title_short Investigating the Relationship between Income Inequality, Urbanization, and Economic Growth in Provinces of Iran
title_sort investigating the relationship between income inequality urbanization and economic growth in provinces of iran
topic income inequality
economic growth
urbanization
dumitrescu-hurlin causality test
spatial panel model.
url http://jpbud.ir/article-1-2119-en.pdf
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