Urban Economics and Planning

Urban Economics and Planning

Analysis of the Economic Impacts of Industrial Estates on Surrounding Regions (Case Study: Suleiman Sabahi Industrial Estate)

Document Type : Original Article

Authors
1 Master’s in Ecotourism, Department of Geography and Tourism, Faculty of Natural Resources and Earth Sciences, University of Kashan, Kashan, Iran
2 Bachelor’s in Civil Engineering, Department of Civil Engineering, Faculty of Engineering, Islamic Azad University, Kashan Branch, Kashan, Iran
Abstract
Introduction 
Industry is a cornerstone of economic development, pivotal in the progress of less-developed regions. Compared to agriculture, the industrial sector exhibits greater flexibility due to its ability to adapt production factors to diverse geographical conditions. The forward and backward linkages of industry with other economic sectors make it an effective tool for resource organization and sustainable development. The process of industrialization is so critical that the technological advancements of the past three centuries are considered a fundamental driver of the economic prosperity of developed nations today. Consequently, industrialization is regarded as a decisive and indispensable strategy for countries’ economic and social advancement. To this end, many nations pursue industrialization through targeted planning and policymaking. One such policy is the establishment of industrial estates, designed to concentrate production and industrial activities within a specific geographical area. These estates contribute to socio-economic objectives by attracting investment, generating employment, increasing income, and fostering the development of supporting service industries. However, expanding industrial estates can pose challenges, such as environmental pollution.
In Iran, the establishment of industrial estates dates back to 1954, when the first industrial estate was created in Karaj. The Suleiman Sabahi Industrial Estate, established in 1991 in Aran and Bidgol (Isfahan Province), has become a key industrial hub in the region, hosting over 500 industrial units, particularly in the machine-made carpet industry. The economy of Aran and Bidgol is significantly dependent on this industrial estate, with the workforce employed there constituting the primary source of income and employment for the region.
Despite numerous studies on the role of industrial estates in Iran’s economic development, the economic impacts of the Suleiman Sabahi Industrial Estate on Aran and Bidgol have not been previously explored. This study aims to address this gap by evaluating the estate’s impacts on key economic development indicators, including job creation, income growth, and improvements in quality of life. The primary research question is: What impact has the establishment and development of the Suleiman Sabahi Industrial Estate had on the economic development indicators of Aran and Bidgol? The research hypothesis posits that the industrial estate has positively impacted the region’s economic development indicators.
Materials and Methods
This study adopts a descriptive-analytical approach with a quantitative and applied methodology. The study population comprised 92,287 residents of Aran and Bidgol. A simple random sampling method was employed, and using Cochran’s formula with a 5% margin of error, a minimum sample size of 383 individuals was determined. To ensure data adequacy, 440 questionnaires were distributed, of which 400 valid responses (91% response rate) were selected for analysis after excluding 40 incomplete or invalid questionnaires. The data collection tool was a researcher-designed questionnaire with 13 questions based on a five-point Likert scale, covering key economic indicators such as employment and income. The questionnaire included 11 positive and two negative questions (related to rising land and housing prices and land use change), arranged randomly to minimize response bias. Negative questions were recoded for consistent analysis in SPSS software.
Five experts in regional economics and research methodology confirmed the questionnaire’s face and content validity. The instrument’s reliability was calculated using Cronbach’s alpha coefficient (0.87), indicating high reliability. Data were analyzed using SPSS software. Descriptive statistics (mean, standard deviation, frequency, and percentage) were used to describe the data. In contrast, inferential statistics, including the one-sample T-test (comparing the mean of economic indicators to a reference value of 3), the Friedman test (ranking variables), and the independent T-test (comparing responses between males and females), were used to test the hypotheses. The significance level for all tests was set at 0.05, and the normality of the data was confirmed using the Kolmogorov-Smirnov test. Additionally, 13 key economic variables, including job creation, income growth, poverty reduction, investment attraction, and land use change, were selected with clear operational definitions to comprehensively assess the impacts of the industrial estate.
Findings
The results of the one-sample T-test indicated that the overall mean of the economic index (3.50) was significantly higher than the reference value of 3 (p < 0.05), with a Cohen’s d effect size of 0.74, confirming a substantial positive impact. This finding demonstrates that the Suleiman Sabahi Industrial Estate has had a significant and positive effect on the economic development of Aran and Bidgol. Analysis of the mean scores of the 13 economic variables revealed that only the variable “improvement in citizens’ savings” had a mean score below the reference value of 3. All other variables exhibited means above the average threshold. However, the notably high mean scores for the variables “rising land and housing prices” and “land use change,” typically considered negative consequences of economic development, highlight challenges related to housing affordability and environmental sustainability in the region.
The Friedman test results revealed significant differences in the ranking of variables by respondents, indicating that respondents assigned varying levels of importance to the study variables. Specifically, the variable “rising land and housing prices” received the highest mean rank (9.76), while “improvement in citizens’ savings” had the lowest mean rank (4.60) from the respondents’ perspective.
The independent T-test results showed no significant difference between the responses of males (mean = 3.54) and females (mean = 3.44), suggesting that gender had a minimal influence on perceptions of the economic indicators.
Conclusion
The findings confirm that the Suleiman Sabahi Industrial Estate has had a significant and positive impact on the economic development of Aran and Bidgol. This impact is particularly evident in job creation, increased production, and export growth variables. However, challenges such as rising land and housing prices and land use change were identified as key issues that could threaten the sustainability of development. To enhance the positive impacts and mitigate these challenges, the following recommendations are proposed: 1) Implementing regulations to control property speculation and provide affordable housing, 2) Enforcing strict oversight on the conversion of agricultural land, and 3) Adopting water recycling systems in industrial units to manage water resources in the desert region.
For future research, it is recommended to investigate the long-term effects of the industrial estate on income inequality and its social and environmental consequences. Due to the study’s focus on a single industrial estate, its generalizability is limited, and further research in other regions is necessary.
Keywords

Subjects


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Volume 6, Issue 3
Summer 2025
Pages 86-99

  • Receive Date 03 May 2025
  • Revise Date 30 June 2025
  • Accept Date 04 July 2025