Direct and Indirect Impacts of Development Investments on the Growth of Total Productivity and Poverty Alleviation in Rural Areas of Iran

Considering the importance of government investment in poverty alleviation, the main objective of this study is to examine the direct and indirect impacts of some of these investments on poverty alleviation and total growth of productivity in rural areas of Iran. To do this, an equation system was used which includes the effective factors on poverty and productivity growth. Based on the results, rural poverty is more elastic to investment in rural development and construction than other government investments, but investment in this context has no impact on the growth of total productivity. Investment in road construction is effective on rural poverty and ranked second in this respect. The next rank belongs to investment in agricultural research and its impact on the growth of total productivity is positive. According to the results, the impacts of various government development investments on rural poverty are direct, and their indirect impacts are limited.