The Main Determinants of Inclusive Growth in Iranian Provinces (GMM Approach in Panel Data)

The investigation of inclusive growth is one of the main issues in urban economics. For this purpose, the main objective of this paper is to investigate the relationship between income inequality and growth in Iranian provinces by GMM approach in panel data over the period of 2000-2009.The empirical results of study reveal that, initial value of Gini coefficient; unemployment rate and Gini coefficient growth have negative and significant effects on the Iranian provinces growth.With respect to the results of this paper the main policy implication is that the policy makers should adopt the pro-poor policies to improve the economic growth in Iranian provinces.