Identification of Economic Growth in Reducing Poverty, Use of Fixed Price Multiplier Approach Based on the SAM (Social Accounting Matrix)

The main purpose of this paper is presenting theoretical principles with respect to the place of economic sectors in decreasing poverty and analyzing direct and indirect effects of FGT (Foster-Greer-Thorbecke) poverty index separately for different economic activities against increase in production. In this study، using Fixed Price Multiplier coefficients approach in the scope of Social Accounting Matrix pattern، the impact of economic growth on poverty reduction is investigated. The results indicate that the reduction of poverty in 14 economic sectors has been affected by two factors: change in average income of the socio-economic groups and the elasticity of poverty index to change in the average income of the same groups. Also، the growth in agriculture، building، wholesale and retail sectors has the highest share in decreasing poverty.