Investigation of Household Income and Expenditure Convergence in Provinces of Iran

Document Type : Scientific paper

Authors

1 assistant professor

2 assistan professor

3 m.a economy

Abstract

The convergence process is reviewed as one of the results of economic growth in recent years. The order of convergence is that, poor areas have higher growth rates than the rich, so the poor areas are getting closer to wealthier regions in terms of economic status over the time. So in this study, we tried to answer the fundamental question that there are income convergence and expenditure Convergence among the Provinces of Iran during (1982-2012) or not?. For this purpose, we used panel unit root tests in order to investigate absolute and conditional beta convergence. The results show that in this period the absolute and conditional beta convergence for incomes and costs of province are approved.For this purpose, we used panel unit root tests in order to investigate absolute and conditional beta convergence. The results show that in this period the absolute and conditional beta convergence for incomes and costs of province are approved.For this purpose, we used panel unit root tests in order to investigate absolute and conditional beta convergence. The results show that in this period the absolute and conditional beta convergence for incomes and costs of province are approvedFor this purpose, we used panel unit root tests in order to investigate absolute and conditional beta convergence. The results show that in this period the absolute and conditional beta convergence for incomes and costs of province are approved

Keywords


-       Afshari, Z. (1999). Investigating of Convergence in Iran's Provinces (Testing the theory of Solow and Swan), Commerce Research Journal, Vol.13:1-17 (In Persian).
-       Akbari, N. and Moaeed Far, R. (2004). Investigating the Convergence in Iran's Provinces (A Spatial Econometric Approach), Quarterly Journal of Economic Research, Vol 4, N.13:1-13 (In Persian). 
-       Barro, R.J. and Sala-i-Martin X. (1991). Convergence across States and Regions, Brookings Papers on Economic Activity, Vol.2:107-158.
-       Barro, R.J and Sala-i-Martin X. (1990). Economic Growth and Convergence across the United States, NEBR, Working paper 3419.
-       Barro, R. J. and Sala-i-Martin X. (1995). Convergence, Journal of Political Economy, V.100:223-251.
-       Bernard, A. B and Durlauf, S.N. (1995). Convergence in International Output, Journal of Applied Econometrics, Vol 10,No.2:97-108.
-       Bernard, A. B. and Durlauf, S.N. (1996). Interpreting Tests of the Convergence Hypothesis, Journal Of Econometrics, Vol.71:161-173 .
-       Ben-David, D. (1994). Convergence Club and Diverging Economics, Unpublished Manuscript, University of Houston, Ben-Gurion University.
-       Borsi, M. and Metiu, N.(2015). The Evolution of Economic Convergence in the European Union, Empirical Economics, Vol 48, Issue 2: 657-681.
-       Cuando, J. (2011). Structural Breaks and Real Convergence in OPEC Countries, Journal of Applied Econometrics .No.1:101-117.
-       Evans, P. and Karras, G. (1996). Convergence Revisited, Journal of Monetary Economics, No.37:249-265.
-       Evans, P. (1998). Using Panel Data to Evaluate Growth Theories, International Economics Review, No.39:295-306.
-       Fallahi, F., Salmani, B. and Kiani, S. (2012). A Study of Beta Convergence between Iran and Selected Islamic Countries, Journal of Economic Research, No. 4: 171-194.
-       Guetat, I. and Serranito, F. (2007). Income Convergence within the MENA Countries: A Panel Unit Root Approach, The Quarterly Review of Economics and Finance, Vol.46, Issue 5:685-706.
-       Hadri, K. (2000). Testing for Stationary in Heterogeneous Panel Data, Econometrics Journal, Royal Economic Society, Vol. 3, No.2:148-161.
-       Im, K., Pesaran, M.H. and Shin, Y. (2003). Testing for Unit Roots in Heterogeneous Panels, Journal of Economic Growth, No.2:131-153
-       Juan Roman, V.H. and Rivera- Batiz, L. (1996). IMF Working paper, No 96/92.
-       Keung, Ch. and Lau, M. (2010). Convergence Across the United States: Evidence from Panel ESTAR Unit Root Test, International Atlantic Economic Society, No.16:52-64
-       Khalili Aragi, S. M. and Masoudi, N. (2006). Convergence Theory, A Study of Iran's Position, Economic Essay, Vol. 3, N. 6: 81-106.
-       Levin, A., Lin, C. F.  and Chu, C.S.J. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties, Journal of Econometrics, No.108, Issue 1: pp.1-24
-       Mehregan, N. and Rezaee, R. (2009), Econometrics Guide of Eviews 6, First Edition, Faculty of Economics Science, Tehran.
 
-       Mihaly, T. B. and Norbert, M. (2013). The Evolution of Economic Convergence in the European Union, Bundesbank Discussion, No 28. PP. 1-30
-       Motafaker Azad, M. A., Ranipour, R., Karimi Takanlou, Z. and  Gholami, L. (2014). The Study of Club Convergence Between Provinces of Iran (2008-2000), Economic Research, Fourteenth, No. 3: 158-141(In Persian).
-       Noferesti, M. (1999). Unit Root and Cointegration Econometrics, Third Edition, Rasa Cultural Service Institute, Tehran (In Persian).
-       Rahmani, T. and Asgari, H. (2005). Investigating the Role of Government Policies in Regional Convergence in Iranian Provinces by Using the Deposits Process, Journal of Economic Research, No. 69 : 159-154 (In Persian).
-       Rahmani, T. and Hassanzadeh, I. (2011). Impact of Migration on Economic Growth and Regional Convergence in Iran, Journal of Economic Modeling Research, No. 5: 1-19. (In Persian).
-       -Salami, F., Fegh Majidi, A. and Mohammadi, A. (1395). Economic Research and Policy, Vol. 24, No. 80: 194-167.
-       Souri, A. (1391). Econometrics, Using Eviews7, Cultural Publishing, Fifth Edition, Tehran.
-       Summers, R. and Heston, A. (1991). The Pen World Table: an Expanded Set of International Comparisons 1950-1988, Quarterly Journal of Economics, Vol.106: 327-366.
-       Seya, H., Tsutsumi, M. and Yamagata, Y. (2012). Income Convergence in Japan :A Bayesian Spatial Durbin Model Approach, Original Research Article Economic Modeling, Vol. 29, No. 1:60-71.
-       Tomljanovich, M. and Vogelsang, T.J. (2002). Are US Region Convergence? Using New Econometric Methods to Examine Old Issues, Empirical Economics, Vol. 27, No.1, pp. 49-62.