Measuring The Effect of Sports Industry Production on Iranian Provinces' Economic Growth Using GMM Method

Asaadi, Marzieh; Daliri, Hasan

doi:10.30473/arsm.2025.68937.3798

Measuring The Effect of Sports Industry Production on Iranian Provinces' Economic Growth Using GMM Method

Document Type : Research Paper

Authors

Marzieh Asaadi ¹
Hasan Daliri ²

¹ Golestan University, Department of Management and Economics

² Department Of Management And Economics Golestan University

10.30473/arsm.2025.68937.3798

Abstract

Economic growth is one of the most important goals of regional-provincial development planning, considering the limited capital resources and the optimal use of human resources. Based on the concept of the sports industry in a broad sense, meaning all activities related to sports, including the production and distribution of sports goods and services that are priced in the market and create economic profit, the development of the sports industry leads to economic growth. In this regard, the main research question is to estimate Gross Domestic Sports Product (GDSP) share in Iran`s economic growth during 1389-1400. For this purpose, after calculating provincial GDSP, this variable was added as an input in the Cobb-Douglas production function to the two other production factors namely labor and capital. Also, the possibility of interaction between the two main production inputs, i.e., labor and capital, with the gross production of sports was also included in the estimated model. The applied modeling approach is based on panel data and includes two methods: regression model with random effects and dynamic regression model with GMM estimator. The estimation results provide statistical evidence about the positive effects of GDSP on economic growth. 1) The effect of GDSP on economic growth is positive and significant so that each one percent increase in GDSP at real prices can increase economic growth by 0.17 percent. 2) The interactive effects of labor and capital inputs with GDSP are small, 0.05% and 0.07%, respectively, but the impact is positive and significantly increasing economic growth.

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