Investigating the relationship between urbanization and economic growth in Iran

Document Type : Original Article


M.A. in Economics, Shiraz Islamic Azad University, Iran


Achieving economic growth and increasing living standards and public welfare has always been one of the goals pursued by various governments around the world. In economic studies, identifying the factors that facilitate the achievement of these goals play an important role. On the other hand, the study of the role of population and its effects on different societies has long been the focus of scholars. In this regard, the main purpose of this study is to investigate the relationship between urbanization and economic growth in Iran over a period of 40 years. Data analysis in this paper was performed using vector error correction econometrics (VECM). The results show that in the long run, the increase in urban population leads to increased economic growth. Also, the research findings in general show that increasing urbanization through economies of scale and specialization has significant effects on productivity growth, employment and production.


Main Subjects

Volume 1, Issue 4
December 2018
Pages 81-91
  • Receive Date: 16 August 2018
  • Revise Date: 24 September 2018
  • Accept Date: 05 October 2018