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

One of the most important goals of regional development is the optimal allocation of limited physical and human capital resources to achieve economic growth. The sports industry, as an emerging industry, encompasses all activities related to the production and distribution of sports products that are priced in the market. The main objective of this research is to estimate the contribution of Gross Domestic Sports Product (GDSP) to the economic growth of Iran's provinces during the period 2011-2021. To this end, after calculating GDSP separately for each province of Iran, this variable was added as an input to the Cobb-Douglas production function alongside the two other factors of production: labor and capital. Additionally, the potential interaction between the two main inputs of production—human resources and capital—with Gross Sports Production was also considered in the estimated model. The modeling approach is based on panel data and includes two methods: a random-effects regression model and a dynamic regression model estimated using the GMM estimator. The estimation results provide statistical evidence of the positive effects of Gross Sports Production on economic growth: 1) The effect of Gross Sports Production on economic growth is positive and significant, such that every one percent increase in real GDSP has increased real economic growth by up to 0.17 percent. 2) The interactive effects of labor and capital inputs with GDSP, although small, were positive and significant, increasing economic growth by 0.05 and 0.07 percent, respectively. The most important implication of this research is the necessity of planning to expand investment in sports infrastructure and activities with the aim of leveraging the potential of this industry for the economic growth of Iran's provinces..

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