Investigating the Economic Effects of Budget Allocation Manner to the Border Provinces of the Country Based on Their Needs and Capacity (Panel Data Approach)

Economic inequality and regional discrimination are one of the factors influencing the economic growth of countries and regions. In a way, discrimination in government budgeting and economic inequalities in different parts of the country deprives people of trust in government functions and affects macroeconomic variables. Therefore, the purpose of this study is investigation of government budgeting distribution and the impact of economic discrimination on GDP of sixteen Iranian border provinces. For analyzing of data eviews9 software environment and panel data model method have been used. The results of this study show that the variable of distribution of budget between provinces has a negative and significant effect on the GDP of border provinces, which decreases by 0.263% with increasing discrimination in the way of distribution of budget in border provinces. The variables of export value of goods and services, labor productivity, paying zakat and number of scientific experts each have positive and significant effect on GDP of border provinces. Therefore, in order to increase GDP in border provinces, it is recommended, in addition to apply export promotion policies, improve labor productivity, promote human capital, encourages people to pay zakat, all the needs and capacities of these provinces to allocate state budget funds to be considered.