How Has the Multidimensional Poverty Map in Iran Changed During the Last Decade?

Articles in Press

Document Type : Research Paper

Authors

1 Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran

2 Faculty of Humanities, Department of Economics, Ayatollah Boroujerdi University, Boroujerd, Iran

3 Faculty of Social Sciences, Department of Economics, Razi University, Kermanshah, Iran

Abstract

This paper measures the multidimensional poverty index (MPI) in both urban and rural areas of the 31 Iranian provinces from 2005 to 2019 using Alkire & Foster's method. The study draws different maps of Iran's MPI during critical events such as the fourth development plan, the Iranian subsidy reform plan, nuclear sanctions, the JCPOA agreement, and the US withdrawal from JCPOA to show changes in poverty. Also, we have examined the effect of macroeconomic variables on MPI using a dynamic panel data model. The results indicate that rural poverty was higher than urban poverty throughout the years under investigation. The study also finds that after imposing severe sanctions on Iran's nuclear program, MPI increased by about 1.4% and 2.4% in urban and rural areas, respectively. One year after the JCPOA agreement, both urban and rural MPI decreased significantly, especially in rural areas where it decreased by 3%. After the US withdrawal from JCPOA, both urban and rural MPI increased by about 1.4%. Finally, the findings from the panel data model demonstrate that the previous period's MPI has a significant negative influence on current MPI. Moreover, government size, income inequality, and inflation exhibit a nonlinear effect on MPI. Lastly, per capita income has a significant positive effect on MPI, indicating an anti-poor growth pattern in Iran during the last decade.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 04 December 2023

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