Title of article :
Does Market Potential Matter? Evidence on the Impact of Market Potential on Economic Growth in Iranian Provinces
Author/Authors :
Dehghan Shabani, Zahra Department of Economics - Faculty of Economics, Management and Social Sciences - Shiraz University , Samadi, Ali Hussein Department of Economics - Faculty of Economics, Management and Social Sciences - Shiraz University , Zare, Amene Department of Economics - Faculty of Economics, Management and Social Sciences - Shiraz University
Abstract :
The market potential is an indicator showing the level of market access and national demand for products of a region. The aim of this study is to study the effect of market potential on regional economic growth in 28 Iranian provinces over the years 2001–2011. In order to do that, a model of regional growth was estimated by using Spatial Dynamic Panel Data technique. This technique allows us to control for endogeneity biases. Based on the findings, the market potential has a significant positive impact on economic growth of Iranian provinces. This means that as the regional market of products gets bigger, it will experience a higher economic growth.
Keywords :
Market Potential , Regional Economic Growth , New Economic Geography Model , Spatial Dynamic Panel Data
Journal title :
Astroparticle Physics
