Examining the convergence of gross domestic product and attracting foreign direct investment in Iran s provinces with a spatial econometric approach

Hossein Mirzaei¹ roghayeh bagheri²

1) PhD in International Economics, Assistant Professor of Payam Noor University
2) Master of Economic Sciences

IOI Code : XYCF-HDHBK
Publication : 2nd.International Congress on Management, Economy, Humanities and Business Development(icmba.ir)
Abstract :
    The role and position of investment in the process of growth and development is such that investment is called the driving engine of economic growth. It is observed today and especially in recent decades. One of the important features of the global economy is the significant growth of foreign direct investment flows. In this research, the results of the spatial camera model confirm the effectiveness of the spatial effects in the model. In other words, there is a positive spatial relationship between the observations related to the attraction of foreign direct investment in the studied provinces, and not including it in the model will lead to biased results. The results of the present research show the importance of the variables of GDP of the source and destination provinces and proximity on the absorption flow. Foreign investment is among the studied provinces.

Keywords : spatial econometrics foreign direct investment gross domestic production