Study of the structure of industry in Iran according regional cohesion and balance, sustainable employment and general policies of the system.

Document Type : Research/Original/Regular Article

Authors

1 PhD Candidate of Economics, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran

2 Associate Professor, Department of Economics, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran

Abstract

One of the issues in the general policies of the country is the difference in unemployment rate in different provinces, and reforming production structure to increase job opportunities and improve the economy, as unemployment is considered the most important factor of political instability. The current paper borrows a space econometrics approach and the statistics from different provinces in Iran from 2011 to 2019. The findings showed that consequences of industrial agglomeration and the interrelationship among the subsectors in industry can result in the reduction of unemployment. In addition, economic development and the increase in the value-added share of industry in GDP can contribute to the reduction of unemployment. However, 10% error in education can increase unemployment which suggest the unproductivity of education in Iran’s economy. Therefore, it is important to consider reforming the production structure in order to increase the share of industry in provinces in Iran, in line with the general policies, based on the relative advantage and ground survey policies to benefit from the impact of the industrial agglomeration and the interrelationship among the subsectors

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References

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