Abstract

This paper attempts to conceptualize and examine regional productivity in terms of the regional endogenous development of Iran’s regions. The paper introduces a conceptual model for the study and then develops and tests the model with data for the primary regions of Iran. Large and positive correlation is found between measures of latent and explanatory independent and dependent variables in the regional productivity model. Specifically it is found that such endogenous factors as agglomeration and clustering is a critical driving force for achieving increased regional productivity and thus the tailoring of polices to support regional endogenous development and growth.

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