Investigating the Factors Affecting Rural Poverty in Provinces of Iran

Poverty reduction is one of the important goals of development programs. This study was conducted to investigate the factors affecting rural poverty in provinces of Iran during the years 2011-2018. Poverty Gap Index has been calculated as dependent variable. The log- log regression model of influencing factors on poverty was estimated using the cross section weighted least squares method. Results showed that rural poverty has been an unbalanced long- run phenomenon that has grown over time and covered more people. The coefficients of estimated model showed that the share of province in GDP, areas under cultivation, number of rural comprehensive health service centers and dummy variable of less poor provinces have had significant negative effect on poverty. The value added of agriculture sector, rural consumer price index, family size, trend, first lag of dependent variable and dummy variable of poorer provinces have had significant positive effect on poverty gap index. The negative effect of the share of province in GDP and areas under cultivation on poverty confirmed the important role of production infrastructures and economic opportunities in poverty reduction. Significant positive effect of the value added of agriculture sector can be an evidence of small contribution of villagers in value added of this sector. Based on the results of this study, it is suggested to avoid the concentration of investment, resources and production opportunities in richer provinces and to pay attention to balanced regional development to reduce poverty in poor provinces. Also anti-inflationary policies will reduce poverty in all regions. Since poverty has been a long-run and growing phenomenon in most regions, long- run planning in production and welfare infrastructures is needed to eradicate poverty.