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Autor:innen: 
Dreger, Christian
Rahmani, Teymur
Eckey, Hans-Friedrich
Datum: 
2007
Schriftenreihe/Nr.: 
DIW Discussion Papers No. 741
Verlag: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Zusammenfassung: 
The neoclassical growth model predicts convergence of productivity or per capita output levels across regions. If participation in the labor force is constant, convergence of per capita income is implied. We investigate this hypothesis for the Iranian economy using data on demand deposits as a proxy for GDP. Furthermore, the analysis controls for the effects of rent seeking. Due to its impact on the allocation of resources, rent-seeking is likely an impediment to overall growth. The results support absolute ß-convergence across Iran's provinces and provide some evidence on the adverse effect of rent seeking on regional convergence.
Schlagwörter: 
Regional convergence
rent-seeking
economic growth
JEL: 
O43
O47
R11
Dokumentart: 
Working Paper

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