Investigating the effect of budget shocks on economic growth of provinces in terms of distribution of inter-provincial credits

Vafae Bakyani, Habiballah; Mashhadiahmad, Mahmood; Mehrara, Mohsen

doi:10.22075/jem.2019.18337.1352

Investigating the effect of budget shocks on economic growth of provinces in terms of distribution of inter-provincial credits

Document Type : Original Article

Authors

Habiballah Vafae Bakyani ¹

Mahmood Mashhadiahmad ²

Mohsen Mehrara ³

¹ Ph.D. Student in Economics, Aras International Campus, University of Tehran

² Professor assistant in Economics, Department of Economics, University of Tehran

³ Professor in Economics, Department of Economics, University of Tehran

10.22075/jem.2019.18337.1352

Abstract

Achieving economic growth and development is one of the most important goals of macro policies for policy makers and economic planners. In this paper, the impact of the budget on economic growth in the provinces has been evaluated by considering the budget and government expenditure in each province. For this purpose, information from the period of 1380-1396 has been used. The method used in this study was Panel VAR. The results indicate that the allocated budget allocations to each province have had a positive effect on the economic growth of that province. But the results indicate that with the increase in budget funding in the country's major provinces, economic growth in neighboring provinces has declined due to increased immigration.

Keywords

Budget

Economic Growth

Budget Credits

Panel VAR Model