Investment on transportation section and it’s impact on geographic concentration of activities in industry of Iran

Subject Areas : Regional Planning

Nader Mehregan ¹ (استاد گروه اقتصاد، دانشگاه بوعلی سینا، همدان، ایران)
Younes Teymori ² (دانشجوی دکتری اقتصاد، دانشگاه بوعلی سینا، همدان، ایران)

Received: 2014-11-26 Accepted : 2017-02-18 Published : 2017-01-20

Keywords: Industry, Transportation, Geographic Concentration, EG Index, Panel Data Model,

Abstract :

At this study, we especially pay attention to importance of relationship between industry and transportation sectors in forming distribution of industrial activities. Wether more investing on transportation sector would be effective on distributioan of manufacturing activities in industry. For this porpuse, we value rate of relation between industry and transportation sectors by input- output table for 1385 and by using direct and indirect forward and backward linkage coefficients for these two sections, and then we analyse importance of this relation on distribution of industry activites at different regions for period of 1379-1385 by using two provincial and industrial econometric panel data models. As distribution of industrial activities are valued by EG index at this study. Results of estimation for two econometric models show that existance relation between road, water, air transportation subsectors and industry sector (their estimated coefficients in industrial model are 1.607, 2.261 and 2.761, respectively) is as far as that it can be effective on industrial geographic concentration in industry of Iran. As results of provincial model are similar and it expresses that making investment and existance different kinds of transportations in provinces, can attract different industrial activities toward these provinces and it could play an important role in industrializing provinces and different areas.

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