The Effect of Crime on the Development Convergence of the Provinces of Iran: An Application of Spatial Econometrics

The purpose of this paper is to investigate the effect of crime deterrence (Internal Security) on the convergence of development between the provinces of Iran (during the period 1375 to 1390, respectively). Estimation of convergence equation inspired by Solo- Swan neoclassical growth theory and using spatial econometrics indicates that while there is no a significant deterrent effect of crime index on the speed of development, convergence of development between the provinces of Iran occur. The existence of convergence among provinces, indicates the success of regional development policy in reducing regional inequality. Non-significant impact of crime in the development process could be due to the huge role of government in the development process and also the lack of enough threshold of crime density for the provinces of Iran. It is recommended that as in the past, regional development policies regardless of the crime density in the provinces continue and this insignificance, lack of seriousness in controlling crime and the causes of crime politicians not to follow.