Investigating the Relationship between Urbanization and Urban-Rural Income Gap in Iran (Continuous wavelet transform approach)

Authors

• mohsen Raji Asadabadi ¹
• hashem zare ²

¹ Faculty of Economics and Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran

² Assistant Professor, Department of Economics, Faculty of Economics and Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran

10.30495/jzpm.2022.30316.4091

Abstract

Many factors such as industrial development, settlement and concentration of nomads in newly founded cities, conversion of a number of rural areas to urban areas and marginalization around big cities have increased urbanization. One of the most important factors in the increase of immigration in recent decades has been the "urban-rural income gap" and "inefficient development" in terms of social and economic aspects. Therefore, in the present study, the relationship between urbanization and the urban-rural income gap in Iran for the period of 1358 to 1398 was investigated, and in order to investigate the causality relationship between the variables used in the present study, the model was used with a new approach of analysis method. It uses continuous wavelet correlation. On the other hand, wavelet models are very efficient with the ability to analyze a time series into different and separate frequencies at any moment of time or in the term of time-frequency analysis of time series. The experimental results obtained from the estimation of the model show the existence of a strong correlation and in-phase relationship between the two variables of urbanization and the urban-rural income gap. In the short-term time scale, a strong and severe causal relationship is observed from the side of the urban-rural income gap on urbanization, so that this correlation is equal to 0.8 and this means that with the increase of the desired variable, this factor causes an increase Migration from villages to cities. In the medium and long-term time scale, there is a strong correlation between the two variables mentioned in the short-term time scale, with the difference that, unlike the short-term scale, in the medium and long term, urbanization is the leading variable, which means that the increase in urbanization itself causes The urban-rural income gap is increasing

Keywords

• urbanization
• urban-rural income gap
• continuous wavelet transform
• phase difference

---