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Income Convergence in Iranian Regions


  • Christian Dreger

    () (DIW Berlin)

  • Teymur Rahmani

    (Assistant Professor)

  • Hans-Friedrich Eckey

    (Eckey: University of Kassel)


The neoclassical growth model predicts convergence of productivity or per capita output levels across regions. We investigate this hypothesis for the Iranian economy using data on demand deposits as a proxy for GDP. Moreover, the analysis investigates the effects of rent-seeking on the convergence process. In contrast to previous papers, the analysis shows robust evidence in favour of both sigma and beta convergence across the Iranian provinces and provide some indications on the adverse effect of rent-seeking on regional convergence.

Suggested Citation

  • Christian Dreger & Teymur Rahmani & Hans-Friedrich Eckey, 2009. "Income Convergence in Iranian Regions," Iranian Economic Review, Economics faculty of Tehran university, vol. 14(2), pages 51-69, fall.
  • Handle: RePEc:eut:journl:v:14:y:2009:i:2:p:51

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    References listed on IDEAS

    1. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1231-1294.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    3. Acemoglu, Daron, 1995. "Reward structures and the allocation of talent," European Economic Review, Elsevier, vol. 39(1), pages 17-33, January.
    4. Baland, Jean-Marie & Francois, Patrick, 2000. "Rent-seeking and resource booms," Journal of Development Economics, Elsevier, vol. 61(2), pages 527-542, April.
    5. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    6. James A. Robinson & Daron Acemoglu, 2000. "Political Losers as a Barrier to Economic Development," American Economic Review, American Economic Association, vol. 90(2), pages 126-130, May.
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