An Evaluation of Regional Differences In Iran: Demand-Side Tests

Subject Areas : Futurology

M. Motevasseli ¹ (ندارد)
B. Wahhabi ² (ندارد)

Received: 2015-02-21 Accepted : 2015-02-21 Published : 2000-12-21

Keywords:

Abstract :

One of the most important features in regional development is the concept of “regional differences” which constitutes economic efficiency in planning process. The comprehensive viewpoint of regional development needs general equilibrium approach including supply-side and demand- side differences which in this article, demand- side differences are considered as an important element of GE approach Two main features of this concept are urban- rural disequilibrium (or classical duality) and Spearman’s rank correlation correlation coefficients (SRCC) for consumption and income in period 1976-99. Our findings suggest that the urban- rural gap is declined while the behavior of this index is different in national and regional level. Besides, the crucial oscillations in SRCC fails the convergency or divergency analysis of regional differences. Finally, estimated dynamic consumption function in national and regional levels imply inconsistency of these two levels and the divergency behavior for some regions. It can be argued that these findings stem from the instability of regional development policies in Iran which must emphasis on the role of taking distinguished regional policies and theoretical framework for optimal regional development lies in the heart of it.