The effect of transport infrastructure spillover on Industrial concentration in Iranian provinces

The aim of this study analyses the spatial spillover effects of transport infrastructure on industrial concentration in the provinces of Iran. More specifically, it examined the direct, indirect (spatial spillover), and total effects of infrastructure on the industrial concentration of the provinces. To this end, the econometric model design and the maximum likelihood were used to estimate a spatial Durbin panel data model for the provinces over the period 2001 to 2015. The results showed that transport infrastructure exerts a positive and statistically significant direct effect on the economic growth of the provinces. The transport infrastructure in each province has a significant and positive indirect effect on the industrial concentration of the other provinces, indicating that improvements to the infrastructure of the specific provinces have spatial spillover effects on the industrial concentration of the other provinces. the infrastructure of the specific provinces have spatial spillover effects on the industrial concentration of the other provinces.