Journal of economics and regional development

Providing an Econometric Model to Investigate the Effects of Decentralization Policy on Economic Growth in the Third Plan of Development in Iran

Document Type : Research article

Author

Mozhgan Moallemi
https://doi.org/10.22067/erd.v18i2.13739
Abstract
Abstract:
Decentralization is a process in which local affairs are administrated by local authorities outside of activities of the central government. Today, decentralization policy is considered as one of the ways that most countries adopted to improve public sector performance. In this paper using geometric analysis, innovation that this paper represents, an econometric model is considered to evaluate the effects of the decentralization policy on economic growth.
The model is consistent with economic, political and social circumstances in Iran. This model investigates the effects of decentralization policy of the Third development plan on economic growth via estimatingappropriate indicators.
Estimation results reveal the fact that an increase in decentralization indicator has a positive effect on national economic growth despite the inappropriate distribution of powers among different provinces of the country.

Keywords: Decentralization, Local Governments, Economic Growth, Third Development Plan of Iran.

JEL Classification: H72، O41، C13.

Keywords

Decentralization
Local Governments
Economic Growth
Third Development Plan of Iran
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  • Receive Date 01 July 2012

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