Abstract:
development of social and economic infrastructure in every region is of the basic requirements of economic growth. Infrastructure stimulates economic activity, enhance the productivity of private sector’s inputs, improve economic performance and thus sustainable economic development, enhancing the social welfare and better income distribution. Since the different kind of infrastructure has different effects on the sectors of the economy and then on regional development, examining the effect of infrastructure on regional economic development in various economic sectors for policymakers and planners is of particular importance. In this regard, the production function for different sectors (industry, services and agriculture) for the 30 provinces of Iran for the period 2007-2013 is estimated. Production function by the Panel Corrected Standard Errors (PCSE) method is estimated. Results show that social and economic public infrastructure has a positive impact on the economic growth of these sectors. Furthermore, the result indicates that the impacts of different kinds of infrastructure are different on various sectors of the provinces. That is the impact of social infrastructure on industrial and service sectors are more than an economic infrastructure. On the other hand the economic infrastructure has more effects on the agricultural sector compared to other infrastructure.
Machine summary:
"Finally, it should be mentioned that no regional study has been so far performed about the amount of influence of the public capital stock in social and economic segregation, on the production of the main sectors of industry, services, and agriculture of the provinces of Iran.
5. Econometric Model and Data Set In this study, we investigate the impact of public capital stock in economic and social segregation, on production of industry, agriculture, and private services sectors of Iran’s provinces for the period of 2007–2013.
In order to have a linear relationship of the two sides of the equation (10), the logarithmic form is: ln Qit A0 a ln Kit b ln Lit c ln Git uit (11) uit :error term Firstly, due to the significance of affection of the public capital stock- economic and social- on the production of various sectors, their separated effects are studied.
6. Estimation Result In this study, to investigate the impact of all types of infrastructures on the economic growth of the main sectors of the provinces, we used the Cobb- Douglas production function approach by utilizing the panel data method.
According to the results of table 3, all types of the public capital stock, separately and positively affect the economic growth of the industry sector of provinces (except the water infrastructure stock which of course has an insignificant coefficient), and the ICT infrastructures’ coefficients are not significant, which may be due to the very low values of government’s investment in this field."