Estimating Spatial Concentration of Industry and Effective Factors on It Between Provinces of Iran

Authors
Nader Mehregan
Mohammad Hassan Fotros
Ali Akbar Gholizadeh
Younes Teymourei
Bu- Ali Sina University
10.18869/acadpub.jemr.6.24.7
Abstract
This paper considers spatial distribution of industrial activities and effective factors on such a distribution. Ellison and Glaeser’s spatial concentration index, has been used for measureing spatial distribution of industry. This index has been calculated by Ad-value variable for 30 provinces of Iran and for period of 2006-2013. So, The spatial panel data model has been used in order to stimate impact of effective factors on spatial concentration. Results of this paper, show that distribution of industrial activities between provinces is strongly unequal. Azarbaijan Sharghi, Markazi, Ghazvin and Tehran provinces by 0.03, 0.04, 0.05 and 0.06 for EG index, are the most industrial provinces respectively. Boushehr, Hormozgan and Ilam provinces with 0.68, 0.28 and 0.26 for EG index are the worst industrial provinces. Also, Results from estimating model show that spatial dependance of provinces is equal to 0.31. Increasing return to scale and transportation costs, each one by 0.07 and 0.001 for coefficient in model, are effective on spatial distribution of industry.
Keywords
Spatial concentration
Spatial Dependance
Krugman Model
EG Index
Spatial Panel Data Model
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