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Spatial Structure and Income Inequality in Iranian Provinces: A Cluster-Based Analysis of Complex Relationships

Author

Listed:
  • Ali Khodabandeh

    (University of Tehran)

  • Mojtaba Shahabi Shahmiri

    (University of Tehran)

Abstract

This study investigates the complex relationship between spatial structure and income inequality across Iran's 31 provinces, aiming to move beyond linear and simplistic analyses. The methodology is based on a two-stage quantitative approach: first, four key indicators—urban primacy, polycentricity, the Gini coefficient, and an expenditure dispersion index—were calculated for each province. Second, K-Means cluster analysis was used to classify provinces based on their spatial economic profiles. The findings reveal that no universal link exists between spatial form and inequality, uncovering several distinct patterns: 1) The Dominant Metropolis model (Tehran and Alborz), where extreme spatial concentration is coupled with acute inequality; 2) The "Polycentricity Paradox," where a similar spatial form leads to two contrasting outcomes: "efficient polycentricity" with low inequality (e.g., Kurdistan) and "inefficient polycentricity" with high inequality (e.g., Sistan and Baluchestan); and 3) The "Industrial Multi-Polar" model (Khuzestan), where a balanced spatial form coexists with high income inequality. The main conclusion is that physical form alone does not determine socio-economic outcomes; rather, the "functional quality" and "degree of integration" of the urban network are far more decisive. These findings underscore the need for context-specific regional policies focused on strengthening economic linkages between cities instead of merely engineering spatial form.

Suggested Citation

  • Ali Khodabandeh & Mojtaba Shahabi Shahmiri, 2026. "Spatial Structure and Income Inequality in Iranian Provinces: A Cluster-Based Analysis of Complex Relationships," Discussion Paper series in Regional Science & Economic Geography 2025-12, Gran Sasso Science Institute, Social Sciences, revised Feb 2026.
  • Handle: RePEc:ahy:wpaper:wp74
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    Keywords

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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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