The Effect of Financing and Land Pricing Policies on Development of Industrial Estates Using a Dynamic System Model: Evidences from Iran

Formation of industrial regions and clusters is important in developing economies. In this study, development method of Sterman Dynamic Model was used to evaluate the effects of land pricing and financing policies on industrial estates development. Main data collected from Industry and Mine Org., Industrial Estates Co., and Fars province governor’s office of industrial firms from 1991 to 2010. For validity definition, Mann-Whitney test and Spearman correlation coefficient and for hypothesis testing, a paired Sample t-Test is used. Finding shows that that financing has a significant role in the growing of industrial estate. However, growth in the number of active units as system behavior is encountered an eight-year delay due to the accumulation of surface variables delays from the time of obtaining a license for establishment until organizational maturity. The second hypothesis states that the increased price of land has no positive effect on the growth of industrial estates due to feedback loops and investment motivations. The increase in land prices in estate causes a delay in the development of these estates, but will have little effect on the estatesʹ growth.