Investigation of the Effect of Export Base Employment on Local Employment in Iran Urban Areas: Application of Export Base Theory

Applying Export Base Approach, the effect of export base employment on the growth of urban areas is investigated in this paper. According to export base theory, export base employment is the main determinant of local and total employment. The number of employment in export base sector is determined by applying Location Quotient (LQ). Results indicate that the number and combination of export base sector are different in urban areas. On the other hand, the regression of local employment on export base employment show that increase in export base employment has a positive and significant effect on local and total employment. However it should be kept in mind that export base employment is not the only variable that effect local and total employment in urban areas. Other variables are not investigated in this paper.