Economic Growth Effect on the Poverty in Iran

Economic growth in addition to the direct income effect on poverty has an indirect distribution effect. The main purpose of this research ishas been to estimate the net pure economic growth effect on the poverty in Iran during the periods (1982-1988, t),he first socio-economic development plan ((1989-1993)), the second plan (1995-1999), and a part of the third plan (2000-2001). Economic growth in addition to the direct effect on poverty has an indirect effect through the changes in income distribution inequality. Thus, the pure growth effect on poverty is measured. ThThee results indicate that, poverty increased during (1982-1988). D: decomposing poverty has shownshows that the reduction in inequality alleviated has cool down the level of poverty due to the economic ressesionrecession. It meansThis implies that the reduction in the share of the lower income groups were relatively lower smaller thant that of the higher income groups. Although the poverty has incearsedincreased in this period,, but, the poor has suffered less relative to the rich. In general, throughout the economic plans era, Economic growth has not been pro-poor, except in the third development plan. In other words,; the increase in the share of higher income groups has always been relatively more than that of the lower income groups.