Investigating of the drivers of regional development in Iran: spatial econometric approach

Alignment of industrial development and differences in the regional development has increased the importance of investigation of spatial aspects and of the main drivers in regional development that it is a factor in the spread of inequalities in the regions of each country. This study aimed to assess factors affecting regional development using spatial econometric model and it analyze the regional development problem in the provinces of Iran. For this purpose, the two-sided neighborhood matrix and spatial error model are used for 30 provinces during 1392. The results indicated a significant influence of political factors on increase or decrease the level of regional development disparities between provinces, particularly fiscal policy. Industrial investment as one of the important variables in the development and structural transition has a significant positive influence on regional development and because of the impact that rising income levels, backward and forward linkages and value chain can be a factor convergence is affecting regional development.