Improving the quality of economic growth by achieving higher economic growth along with reducing income inequality is one of the most important goals of many countries, in this regard, productivity is the most important determinant of economic growth, and knowing its effect on income inequality is importan. Therefore, this research, by using the statistical evidence of Iran's provinces over 2010-2019 and applying the spatial econometric approach, will answer the question whether the total factor productivity can lead to the reduction of income inequality. Measuring the income inequality index using the Gini coefficient as well as the total factor productivity using the Solo residual shows that the provinces of Sistan and Baluchistan and Hormozgan have the highest inequality, and Kohgiluyeh and Boyar Ahmad provinces have the lowest income inequality, and South Khorasan and Tehran respectively have the lowest and highest total factor productivity. Spatial econometric results show that the total factor productivity has a positive and significant effect on income inequality, but the development of the industry along with the increase of the total factor productivity reduces income inequality due to having endogenous growth components, so focusing on the development of the industry based on The component of improving technology using credit policies and creating economic stability at the macro level is the most important proposed policy to reduce income inequality. because the level of education quality and the fit between education and employment in Iran's economy is at a low level, and the educational system has not been able to increase the ability of the workforce. but the development of the industry along with the increase in the productivity of the Total factor productivity due to having endogenous growth components reduces income inequality, therefore focusing on the development of the industry based on the improvement component Technology using credit policies and creating economic stability at the macro level is the most important proposed policy to reduce income inequality.
moradi chehri, M. S., fattahi, S., & Almasi, M. (2024). The effect of total factor productivity on income inequality in the provinces of Iran (spatial econometric approach). Public Sector Economics Studies, (), -. doi: 10.22126/pse.2024.10396.1109
MLA
mohammad sadeq moradi chehri; shram fattahi; Mojtaba Almasi. "The effect of total factor productivity on income inequality in the provinces of Iran (spatial econometric approach)". Public Sector Economics Studies, , , 2024, -. doi: 10.22126/pse.2024.10396.1109
HARVARD
moradi chehri, M. S., fattahi, S., Almasi, M. (2024). 'The effect of total factor productivity on income inequality in the provinces of Iran (spatial econometric approach)', Public Sector Economics Studies, (), pp. -. doi: 10.22126/pse.2024.10396.1109
VANCOUVER
moradi chehri, M. S., fattahi, S., Almasi, M. The effect of total factor productivity on income inequality in the provinces of Iran (spatial econometric approach). Public Sector Economics Studies, 2024; (): -. doi: 10.22126/pse.2024.10396.1109
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