University of Isfahan Urban Economics 2588-4867 7 2 2022 09 23 Investigating and Analyzing the Effect of the Government's Financial Policies on the Geographical Distribution of Manufacturing Enterprises among the Provinces of Iran: A Case Study of the Garment Industry Investigating and Analyzing the Effect of the Government's Financial Policies on the Geographical Distribution of Manufacturing Enterprises among the Provinces of Iran: A Case Study of the Garment Industry 67 82 28227 10.22108/ue.2024.140051.1279 FA Mohammadali Maghsoudpour Assistant Professor of Economics, Baft Higher Education Complex, Shahid Bahonar University of Kerman, Kerman, Iran Behnam Karamshahi Assistant Professor of Accounting, Baft Higher Education Complex, Shahid Bahonar University of Kerman, Kerman, Iran Journal Article 2023 12 10 This article aims to investigate and analyze the effect of the government's financial policies on the geographical distribution of garment manufacturing industries in the provinces of Iran using dynamic panel data and the generalized moments method in the period of 2013-2021. The Herfindahl-Hirschman Concentration Index (HHI) was used to measure the level of concentration of companies, and the two variables of the share of the province's construction budget and tax exemptions under Article 132 (DTL) were used to measure the government's financial policies. The results of the research show the positive and significant effect of the province's share of the construction budget on the choice of the business location, but tax exemptions have not been able to have a significant effect on the choice of the location of the economic activity of garment manufacturing industries. Therefore, it is recommended to first evaluate other factors that are effective in deciding the location of the company's activity, and if it is ensured that the social benefits of the dispersion of companies are superior to their concentration, the policy of tax exemptions in Article 132 (DTL) to be reviewed so that it has the necessary efficiency according to the policy maker's goals. This article aims to investigate and analyze the effect of the government's financial policies on the geographical distribution of garment manufacturing industries in the provinces of Iran using dynamic panel data and the generalized moments method in the period of 2013-2021. The Herfindahl-Hirschman Concentration Index (HHI) was used to measure the level of concentration of companies, and the two variables of the share of the province's construction budget and tax exemptions under Article 132 (DTL) were used to measure the government's financial policies. The results of the research show the positive and significant effect of the province's share of the construction budget on the choice of the business location, but tax exemptions have not been able to have a significant effect on the choice of the location of the economic activity of garment manufacturing industries. Therefore, it is recommended to first evaluate other factors that are effective in deciding the location of the company's activity, and if it is ensured that the social benefits of the dispersion of companies are superior to their concentration, the policy of tax exemptions in Article 132 (DTL) to be reviewed so that it has the necessary efficiency according to the policy maker's goals. https://ue.ui.ac.ir/article_28227_ffb907d5b5ced2795cd3e27b67b0bbe7.pdf