Examining and Analysing the Effects of Improvemnt of Productivity on Reducing Relative Poverty in Iran

Iran as a developing country has used several programs and policies for poverty reduction, but continuation of problem of poverty proves failure of these programs. Studies show that priority and focuse of these programs were on income distribution and redistribution. Hence, in this study, we examine and analyze a method that reduces poverty through productivity improvement. For this purpose, first a theoretical framework based on literature review has been introduced and then a model estimated by using panel data approach. The result of this study shows a negative relationship between labor productivity and relative poverty, so for this reason we can expect that, more focus on labor productivity improvement, has significant impact on reduction of relative poverty.