Sectoral tariffs and geographic distribution of agricultural downstream industries:Evidence of Iran’provinces

Subject Areas : Labor and Demographic Economics

mansour ardeshiri ¹ ( Faculty member of economics department ,Islamic Azad university, firoozkoh branch, firoozkoh, IRAN )
Reza Moghaddasi ² ( Associate Professor, Department of Agricultural Economics, Faculty of Agricultural Sciences and Food Technology, Science and Research Branch, Islamic Azad University, Tehran )
Saeed Yazdani ³ ( Professor, Department of Agricultural Economics, College of Agriculture and Natural Resources, University of Tehran, Karaj, Iran )
amir mohamadinejad ⁴ ( faculty member, Islamic Azad University )

Received: 2020-02-16 Accepted : 2020-02-16 Published : 2020-01-21

Keywords: Iran, JEL Classification: F10, geographic distribution, agricultural downstream industries, F15, H32. KeyWords: tariff,

Abstract :

In this paper, within the framework of the theory of "new economic geography”(NEG), we evaluated  the effect of  sectoral tariffs on the geographic distribution of agricultural downstream industries in the provinces of Iran.Midelfart-Knarviket et al.(2000) approach was usedto test the research hypothesis.In this approach, the perspective of industrial activity location is determined by the multifactor interactions between regional and industrial characteristics.Accordingly, the econometric model by fixed effects method has been estimated using the industrial and regional data of 33 agricultural downstream  industries 4-digit code of ISIC classification during the period of 2004-2014 in 28 provinces of Iran.The results show that sectoral tariffs have a significant effect on the industrial location pattern in agricultral downstream industries of Iran; This means that the implementation of supportive policies has led to an increase in the agglomeration in some provinces and the formation of a core-periphery pattern in Iran.

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