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Analysis of the spatial effect of industrial investment on economic performance in Iran’s provinces

Document Type : Original Article

Authors

1 PhD Student in Economics, Department of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

2 Assistant Professor, Department of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

3 PhD Student in International Economics, Department of Economic Sciences, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan, Iran

4 Master of Economics, Payame Noor University of Babol, Babol, Iran

5 Master of Economics, Department of Theoretical and Industrial Economics, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran

https://doi.org/10.34785/J025.2022.027

Abstract

Industrial investments play an important role in improving economic performance and developing economic regions. The industrial sector is one of particular importance in the development process of a region where a significant portion of the population accommodates different levels of income. Achieving this important goal has an effective and decisive role in directing and accelerating the economic performance of the provinces of the country. Therefore, this study aims to analyze the spatial effect of industrial investment on economic performance in all provinces of the country, Iran with a combined spatial econometric approach during the period 2007-2019. Based on the results, the variable of industrial investment and its indirect effects have a positive and significant effect on improving the economic performance of the studied provinces. The results indicated that, the industrial investment should be considered as an important variable in regional development studies in adjacent areas with high economic growth provinces (spatial spillover effects). The results also show that the active population and employment had a positive and significant effect on economic performance, while the wage rate had a negative and significant relationship with the economic performance of the provinces.

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References
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Economic Policies and Research
Volume 1, Issue 4
January 2023
Pages 32-70
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