Abstract:
The concept of inclusive growth is one of the important issues in
the urban economics literature and has been considered in empirical
studies recently. For this purpose, the main aim of this paper is to
investigate the relationship between income inequality and GDP
growth in Iranian provinces over the period of 2000-2012. To
conduct this study, the econometric model has been estimated by
applying seemingly unrelated regression in panel data for 30 Iranian
provinces.
The empirical findings of this paper shows that the Gini
coefficient as a proxy for income inequality and unemployment rate
have negative and the initial level of Gini coefficient has positive
and significant effect on the growth of GDP respectively.
The overall conclusion of this study suggests that inequality of
Iranian provinces can be decreased by improving employment and
growth of per capita income.