Document Type : Research Paper

Authors

1 Associate Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

2 Assistant Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

3 Professor of Economics, Department of Economics, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

4 Assistant Professor of Sociology, Department of Sociology, Faculty of Economics and Social Sciences, Shahid Chamran University of Ahvaz, Ahvaz, Iran

Abstract

One of the important challenges in regional development is to examine the role of local governments and its relationship with large local companies on income distribution. Especially when large companies have national goals and most of their production capacity is capital-intensive and knowledge-intensive, but the area covered by the company is the user. The main purpose of this research is to examine the role of the government and large local companies on income distribution. For this purpose, Khuzestan province was chosen due to its unique characteristics from this point of view, and for the period of 2006 to 2020 seasonally and using the GMM, the objectives of the research were investigated. The results of the research show that the effect of the government's current and construction costs in the province on the urban Gini coefficient is negative and significant, and the effect of the value-added variable of the large industrial companies of the province on the urban Gini coefficient is positive and significant. According to the results of the research, it is suggested that with a careful planning and coordination between large companies and provincial managers, they should take steps to reduce dissatisfaction and income inequality in the province with policies such as increasing local employment and training the local forces of the province.

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