Economic convergence and rent-seeking in Iran

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 741

Classification and Topics

• Classification: Wirtschaft ; Institutions and Growth ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: Regional convergence ; rent-seeking ; economic growth ; Regionale Entwicklung ; Entwicklungskonvergenz ; Rent Seeking ; Iran

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dreger, Christian ; Rahmani, Teymur ; Eckey, Hans-Friedrich
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/27265
• Last update: 10.03.2025, 11:42 AM CET