The Impact of Diversification and Specialization on Employment Growth in Iranian Provinces

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Abstract

Urbanization agglomeration that is named Jacobs externalities, refers to the role of economic diversification in urban. Localization agglomeration, Marshal-Arrow-Romer (MAR) externalities, is related to the concentration of firms activated in a special industry within a specified place. The purpose of this research is to explore the impact of different types of agglomeration economies on employment growth for provinces of Iran in 1996-2006. Empirical results demonstrate a U-shaped relationship between specialization and urban growth We find a positive impact of Jacobs’s externalities on employment growth in provinces of Iran.
JEL Classification: O18, R11, R12, R15.

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