The Evaluation of Iranian Provincial Industrial Rating

Public infrastructure investment through its spillovers impacts and its double causality relation with industrialization is one of the primary means to implement a strategy of regional economic growth. According to the relevant literatures, public infrastructure is exemplified itself in both economic overhead costs and social overhead capital. Iran as one of the developing countries does not possess the identical provincial industrial level due in part to different level of public infrastructures. Thus the major objective of the study is first to rank 30 provinces of the country based on different industrial variables.Second to examine the relationship between the rank of industrialization and public infrastructure levels among different provinces. Taxonomy and Clustering techniques proved that Tehran is eligible to be in the first cluster. This is followed by Isfahan and Khuzestan each in separate cluster. Markazi, E-Azarbaijan, and Khorasan comprised forth cluster. The rest of the other provinces placed in fifth cluster. The results of correlation analysis proved positive relationship between industrial magnitude and public infrastructure level.