The Effect of the Comparative Advantage of Economic Activities on the GDP of the Provinces
Subject Areas : Labor and Demographic Economics
Seiedeh Narges Aghamohammadi
1
,
Golamali Haji
2
*
,
hadi ghafari
3
,
peyman ghafari ashtiani
4
1 - PhD Student, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran
2 - Assistant Professor, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran
3 - Associate Professor, Department of Economics, Payam-e-Noor University, Arak Center, Arak, Iran
4 - Associate Professor, Department of Business Management, Arak Branch, Islamic Azad University, Arak, Iran
Keywords: Economic Growth, Panel Data, O21, JEL: F10, C23 Key words: Comparative Advantage,
Abstract :
Although economic growth is affected by the growth of factors of production, but according to the pattern of endogenous growth, other variables also affect economic growth. In this study, the effect of the comparative advantage of different activities on the GDP of the provinces in the period 2004-2014 has been used. For this purpose, the data of statistical yearbooks and regional accounts of the Statistics Center of Iran for 30 provinces have been used. The estimation of the models has been evaluated in the form of a dynamic panel model using the GMM technique. The results of estimating the models confirm that the comparative advantage index in the three major sectors of agriculture, construction and services have a positive and significant effect on the economic growth of the provinces by 0.49, 0.08 and 0.07 percent, respectively. While the index of comparative advantage of industry, mining and energy sector shows a negative impact of 0.15 on the economic growth of the provinces, this negative impact can be due to the greater impact of other sectors on the GDP of the provinces.
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