The relationship between urban transport development and economic growth in Tehran

IUESA: one of the economically important purposes of countries is to create necessary ground to increase GDP and economic growth. Different studies have indicated that metropolises, particularly capital ones, have increasingly influential role in creating economic growth. One of the necessary conditions for increase in product and economic growth is investment in economic infrastructures. Direct investment on them help to enhance efficiency of production factors, to expand market area, to reduce exchange costs, to create better competitive conditions, and finally to increase production and economic growth. Not long ago, the first international conference on urban economy with the approach of Economy of Resistance; Implementation and Action, was held and organized by IUESA. The result of a research entitled “studying the impact of Tehran Municipality expenses in urban infrastructures on Tehran economic growth” indicated that a unit increase in the expenses of Tehran urban transport increases 1.089 percent Tehran’s economic growth.