New Economic Geography and Explaining Regional Disparity in Iran

Iran has many potentialities for the formation of regional disparities. There are intense inequality between provinces development in common and especially between central and border regions of country. The development index has relatively improved over the past 15 years, in all provinces, but, provinces with the highest and lowest development index is almost unchanged. The main aim of this research is analyzing current regional disparities and explaining its creation and continuity factors from the viewpoint of new economic geography. Study area of research are all provinces of country as geographical regions, but, Sistan & Baluchistan province as a less favored area has been investigated for demonstrating local factors effective on regional divergence. Research required data are collected through field study and some documents. The coefficient of variation has used for understanding Iran regional disparities. Viewpoints of 50 local experts has been analyzed through liker's method for extraction local factors effective on underdevelopment in Sistan and Baluchistan area. Research findings show that two factors are effective on country regional disparity. First, adherence to the conventional economic geographical view based on neoclassical and neoliberal approaches, and neglecting new economic geography in the planning. Neoclassical approach scientifically, havent explaining, predicting and prescribing potentialities and its resulting planning cannot lead to regional convergence. Second, lack of production-oriented institutions are important effective factor on regional disparity and its continuity in Iran. Lack of production-oriented institutions formation has rooted in the rentier system.