Volume 18, Issue 1 (2018)                   QJER 2018, 18(1): 179-201 | Back to browse issues page

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darvishi B, Omidi M, Jani B. Dynamic Poverty Decomposition in Iran’s Four Development Plans: Based on New Six-Component Decomposition Method. QJER 2018; 18 (1) :179-201
URL: http://ecor.modares.ac.ir/article-18-21266-en.html
1- Assistant professor in economics ,Ilam university , darvishi_b@yahoo.com
2- Assistant professor, Department of Mathematics and Statistics
3- M.A. of Economics, Ilam University
Abstract:   (5357 Views)
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.
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Article Type: Original Research | Subject: Economics
Received: 2018/05/24 | Accepted: 2018/05/24 | Published: 2018/05/24

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