Document Type : Original Article
Authors
1 Professor, Department of Economics, Faculty of Economics and Management, Semnan University, Semnan, Iran.
2 Assistant Professor, Department of Economics, Faculty of Management and Economics, Shahid Bahonar Univesity of Kerman, Kerman, Iran.
Abstract
The positive rate of urbanization in recent decades, its special position in benefiting from natural resources and the implementation of several industrial development programs are among the characteristics of Iran's economy that this paper examines the iteraction relationship between them. The results of the vector autoregression model (VAR) estimation for Iran's economy during the 1973 to 2021 show that firstly, urbanization growth responses positively to natural resources revenues shocks and industrialization. Based on which it is predicted that the shock-natural resource and industrialization through the expansion of urban facilities, providing job opportunities in industrial centers and increasing government spending in cities has relatively increased the urban population, which can impose costs such as pollution, marginalization and the growth of illegal activities on the society.Secondly, the response of industrialization to natural resources shock is negative, which confirms resource curse hypothesis. Thirdly: The effect of political variables such as the shock of war on industrial developments is predicted to be significant in relation to the agricultural sector. The findings of paper reveal the role of proper management of revenues from natural resources in controlling in controlling the rate of urbanization and providing suitable conditions for sustainable growth in the industrial sector.
Keywords
Main Subjects
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