Quarterly Journal of Governance Knowledge

Quarterly Journal of Governance Knowledge

Studying the Economic Effects of Regional Development Policymaking in Provinces of Iran (With Emphasis on Provincial Budget Credits)

Document Type : Original Article

Authors
1 ahlul bayt international university
2 Ahlul bayt international university
Abstract
A study of regional development policymaking on economic growth in different provinces of Iran can help to better understand and design appropriate programs for the development and economic growth of the country. One of the most fundamental topics in economic literature is economic growth, about which several theories have been proposed. Achieving 8% economic growth is possible through various paths, one of which is regional development policymaking. Therefore, it seems necessary to examine the economic effects of this policymaking.

This study, using a panel data approach and the dynamic least squares (DOLS) method, analyzed the impact of regional development policymaking on economic growth in 31 provinces of Iran during the years 2011-2013. The results show that a one percent increase in the fiscal decentralization component leads to a 0.547 percent increase in economic growth. Also, with a one percent increase in oil revenue, economic growth increases by 0.089 percent, and the relationship between them is positive and significant. In addition, if the regional balanced credit increases by one percent, economic growth in the long run will increase by 0.853 percent, which is also positive and significant. Also, in the long run, auxiliary variables such as labor force and foreign direct investment have a positive and significant effect on economic growth
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