Crime and convergence of per capita GDP: spatial econometric analysis

One of the theoretical results of Solow-Swan neoclassical growth model is the convergence of per capita GDP in different regions. Conditional convergence model, in addition to the initial per capita GDP, concerns other variables that can affect long-term growth in areas under consideration. This study is to examine the disincentive role of crime in the establishment of the convergence of real per capita GDP among Iranian provinces (1379 to 1392). Conditional beta convergence and spatial econometric used to check integration. Crime index is calculated using TOPSIS method. The results show that the convergence of growth, though slow, is established. Crime index has negative and non-significant impact on the integration. ICT and human capital variables (education and health) have a positive impact on the province's average growth. Also negative sign for the spatial coefficient of dependent variable show that the concentration of economic power in one area for growth, reduces the power generated growth in adjacent areas.