Does Market Potential Matter? Evidence on the Impact of Market Potential on Economic Growth in Iranian Provinces

T he 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 ۲۸ Iranian provinces over the years ۲۰۰۱–۲۰۱۱. 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.

کلیدواژه ها:

Keywords: Market Potential ، Regional Economic Growth ، New Economic Geography Model ، Spatial Dynamic Panel Data. JEL Classification: R۲۳ ، R۱۵ ، R۱۱