Causality between urbanization and urban-rural income gap in Iranian Provinces: Granger causality causality based on Bootstrap approach

Subject Areas : Regional Planning

وحید کفیلی ^{1 *} , mohammadsaeed zabihidan ² , jalil khodaparast shirazi ³

1 - A.P
2 - a.p
3 - a.p

Received: 2021-05-18 Accepted : 2021-12-11 Published : 2023-09-11

Keywords: urbanization, Urban-Rural Income Gap, Panel Causality Test,

Abstract :

One of the phenomena of the present age is the increase of urban population, which brings with it some advantages and disadvantages. The phenomenon has been much faster in developing countries than in developed ones.The expansion of urbanization in Iran is also happening at a high rate.In this research, we investigate the causality between urbanization and urban-rural income gap in Iran's provinces (1996-2019). According to the cross-sectional correlation test, it was necessary to use Granger causality test in terms of inter-sectional relationship condition. Due to the high efficiency in small samples and the use of Fisher's (1932) meta-analysis, the causality test presented by Emirmahmutoglu & Kose (2011) was used. The results show that at 90% level, the causality of the urbanization rate to the urban-rural income gap is established for nine provinces (Ardebil, Isfahan, Kohgiluyeh and Boyer-Ahmad, Semnan, Golestan, Hormozgan, Kordestan, Sistan and Baluchestan, Chaharmahal and Bakhtiari), but the causality of income disparity urbanization rates are only available for four provinces (Ardebil, khorasan, Bushehr and Hormozgan). The results of the meta-analysis made by Fischer (1932) also indicate non-causality in both directions. No significance of causality from urbanization to urban-rural income gap indicates that the urbanization can not justify the high urban-rural income gap in the provinces of Iran. No significance of causality from urban-rural income gap to urbanization indicates that the reason for the expansion of urbanization indicates that reason for the expansion of urbanization goes beyond the urban-rural income gap, and the difference in the level of facilities in different dimensions and other economic components can be the reasons for migration from urban to rural areas.