Arbeitspapier
Economic convergence and rent-seeking in Iran
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.
- Language
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Englisch
- Bibliographic citation
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Series: DIW Discussion Papers ; No. 741
Institutions and Growth
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
rent-seeking
economic growth
Regionale Entwicklung
Entwicklungskonvergenz
Rent Seeking
Iran
Rahmani, Teymur
Eckey, Hans-Friedrich
- Handle
- Last update
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20.09.2024, 8:22 AM CEST
Data provider
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Object type
- Arbeitspapier
Associated
- Dreger, Christian
- Rahmani, Teymur
- Eckey, Hans-Friedrich
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2007