Does government protectionism reduce poverty indices in the rural? Case Study Mazandaran Province

Poverty is major obstacle to economic development in the third world. The purpose of this study was to measure poverty quantity in the rural of Mazandaran province in the two-year periods that one of them selected after performing modification of subsidies payment. After calculating poverty lines in the study area, indicators of poverty, extreme poverty, sen was calculated for this purpose. Survey data were collected from income and expenditure of rural household statistical of Province between 2001 to 2011. The results show in 2009, almost 10% of the population was below the poverty line. In 2011 (after modification of subsidies payment) Necessary energy for the first docile do not meet. Because Food supplies needed of the rural community by self-producing, receiving cash subsidies (direct subsidy) is more profitable than commodity subsidy (indirect subsidy) for them. In this regard, according to the results specially reduction of poverty due to perform the first stage of subsidies modification program, helpful result is expected from enforcing of the second stage of subsidies modification program.