Document Type : Research Paper

Author

• Fatemeh Bazzazan

Abstract

As regional coefficients are estimated for two regions in Iran for the first time recently in Bazzazan et. al. (2009), so underlies to apply for impact analysis. In this study, by using those regional coefficients, we estimate output employment, and income multipliers to measure sectoral, intraregional, interregional, national effects. The results show sectoral production, employment, and income structures in two regions are different. The results show intraregional output effects in the Rest of Economy (with an exception for mining sector) are greater than similar sector in Tehran.  The results also show the interregional output effects of Tehran province is greater. In addition, we observe that labor forces in Tehran are more productive, so that labor intraregional and interregional employment effects are greater and manufacturing sector has the highest effect. Moreover, the results also show that the construction sector and wholesale sector have the highest income intraregional effects in Tehran and the Rest of the economy respectively and mining sector has the least income effect.
 
JEL classification: R12

Keywords

• Two-region
• interregional input-output
• multiplier
• Tehran