Regional Economic Growth, Migration, and Convergence in Iran

Abstract

Migration is the cause and the effect of many economic problems. Although there are many determinants for migration within a country, but the main determinant seems to be searching for better economic conditions. Migration has some consequences for economic growth and especially for regional convergence within a country that labor movement is not deterred by political borders. Neoclassical growth model predicts convergence and the positive effect of migration on convergence. But new growth models do not have unique implication for the effect of migration on regional convergence. Therefore, the effect of migration on regional convergence remains an empirical question. We examine the regional convergence and the effect of migration on regional convergence. Our findings imply the negative effect of migration on regional convergence. We have some explanation for our results.