Volume 10, Issue 37 (Winter 2022)                   IUESA 2022, 10(37): 39-56 | Back to browse issues page

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Fatahi S, Heidarian M, Dourbash M. Studying Spatial Effects of City Size and Industrial Structure on Labor Productivity; Application of Spatial Panel Methods for Iranian Provinces. IUESA. 2022; 10 (37) :39-56
URL: http://iueam.ir/article-1-1820-en.html
1- , mailto:sh_fatahi@yahoo.com
Abstract:   (274 Views)
In economic literature, labor productivity is considered as a social infrastructure for optimal combination of production factors more than a physical infrastructure, which can have different effects along with variables such as city size distribution. This research studies effects of city size and industrial structure as two pillars to maintain and sustain economic growth and evaluates its effects on a socio-economic variable such as labor productivity. For this purpose, spatial panel models is used to estimate city size effects and industrialization on labor productivity for 30 provinces of the country during the period of 2005-2017. Due to agglomeration and aggregation effects in cities, is used of city size and industrialization square in estimates. The results shows that there is a U-inverse relationship between city size and industrialization with labor productivity. It can be argued that in the first stage due to larger effect of agglomeration, city size has a positive effect on labor productivity, but over time aggregation effect has a stronger force than agglomeration effect in cities, and reduces labor productivity. On the other hand, industrial structure increases labor productivity by increasing production, but after reaching to optimum point, due to excessive dependence on the manufacturing industry, reduces final benefits of scale impact the on labor productivity.
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Type of Study: Research | Subject: Special
Received: 2019/07/14 | Accepted: 2020/01/18 | Published: 2022/03/1 | ePublished: 2022/03/1

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