Investigating the nonlinear effects of government size on multidimensional poverty in developing countries (An approach of the GMM method)

The effects of government size on multidimensional poverty as an important factor in the process of development and growth of countries has a decisive role, and various aspects and areas in developing countries have always been affected by this category. Accordingly, one of the most important goals of economic planners is to reduce the size of the government in order to prevent the spread of poverty, especially multidimensional poverty. Without taking into account the different dimensions of poverty, it is not possible to make an accurate analysis of poverty and its effects on societies. Therefore, the current research aims to evaluate the effects of government size on multidimensional poverty for Iran and a selection of developing countries in the period of 2012-2021 using the method of generalized moments. The results of the study indicate that the government size index has a non-linear effect on multidimensional poverty. The government size index at its low levels has left a negative impact on multidimensional poverty, but the increase in the level of the government size index and its crossing of the threshold level of 18.33 has caused the aggravation of multidimensional poverty. On the other hand, the first break of multidimensional poverty has had a positive effect and the control of corruption and public health has had a negative effect on multidimensional poverty.