Dynamic Poverty Decomposition in Iran's Four Development Plans: Based on New Six-Component Decomposition Method

Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
Poverty decomposition provides useful information about the factors affecting poverty and helps the politicians to choose suitable poverty reduction policies. In this context, sectoral decomposition (Ravallion-Huppi, 1991) and growth–­equality decomposition (Datte- Ravallion, 1992) are the most widely used methods for poverty decomposition. But the ambiguous elements (such as residual and interaction terms) existing in these methods resulted in developing a new decomposition method by Fujii (2014). His decomposition method is residual-free and has some desirable properties including time-reversion consistency, and sub-period additivity. In the present study, following Fujii (2014) and using Iran’s rural and urban household expenditure and income data, the poverty is decomposed into six components: population shift (PS), within-region redistribution (WR), between-region redistribution (BR), nominal growth (NG), inflation (IF), and methodological change (MC). The results show that population shift (PS), within-region redistribution (WR) and inflation components explain the highest portion of the poverty changes in the urban and rural areas. Based on the results, the pro-poor growth policies and immigration-reducing policies are recommended for reducing rural poverty, while the growth-oriented policies with redistribution are recommended for decreasing urban areas. In all periods, inflation is the main poverty-increasing factor in both urban and rural areas; therefore, controlling inflation can reduce poverty rates.
Language:
Persian
Published:
The Economic Reseach, Volume:18 Issue: 1, 2018
Pages:
179 to 201
https://www.magiran.com/p1830909  
سامانه نویسندگان
  • Darvishi، Bagher
    Corresponding Author (1)
    Darvishi, Bagher
    Associate Professor economics, University Of Ilam, ایلام, Iran
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