The Impact of Economic Growth on Iranian Income Distribution, (Nonlinear LSTAR approach)

Document Type : Research Article

Authors

Abstract

Some subjects such as economic growth, optimum distribution of national income and also economic justice have been considered by the economics and economic policies in Iran.  In this regard, there are a variety of ideas about the interaction effects of distribution of incomes and eeconomic growth. According of the foundations of theoretical, there is a U reverse relation between distribution of national income and economic growth. This curve in known as Simon Kuznets hypothesis in economic literature of growth. Some different result have been obtained about the relation between economic growth and income inequality based on several studies in Iran and out of Iran. According to doing the law enforcement targeted subsidies in Iran during recent years, one of the most important goal of this plan was to improve distribution of national income among the poor layers of social.
In this regard, this study aims to evaluate the relationship between economic growth and income distribution during 1350-1389 in Iran. For this purpose, Gini index for income distribution measurement and autoregressive logistical approach or methodology smooth transition logistic smooth transition auto regression (LSTAR) is used as the econometric approach. In this method, the relation between variables is changed nonlinearly. So, first the problem is modeled nonlinear. According to the number of observations that are less than 100 observations, Schwarz- Bayesian criterion is used to in order to finding the optimum amount of lag. Based on this criterion, the optimum amount for both dependent and independent variable is 1. Based on result about estimation the model and rejection two hypothesizes and   and, the model of LSTAR1 is selected. Next results show that gross domestic product (GDP) growth has a negative and significant effect on Gini index as a criterion for measurement income distribution both in linear and nonlinear cases in the period under review. Non-linear relationship between these two variables shows that the optimal level of the Economic Growth involves maximizing Gini coefficient in Iran. On the other hand, more increasing in Gini index means shows more unequally in income distribution. Therefore adoption and deploying polities for increasing growth economic will cause decreasing Gini index and more equally income distribution in Irani economic. This result also show that, the hypothesis of Kuznets about existing a nonlinear relation between economic growth and income distribution cannot be rejected.
In order to evaluate the nonlinear estimated model some tests were used such as ARCH- LM test, lack of autocorrelation, and stability of parameters. This evaluation was done by using the JMULTI software.  The results of evaluation confirm that there is no error relevant to existing autocorrelation in none of lags. This result show that there is no autocorrelation in variable lag of the gross domestic product (GDP) growth in Iran economic.
 Additional analysis show that there is no other nonlinear variable in the estimated model and so, the null hypothesis about suitable specification of the model cannot be rejected. Also in order to evaluate the dissimilarity of variance between disturbances of the estimated phrases, the Auto Regressive Conditional Heteroskedasticity Lagrange Multiplier (ARCH-LM) test was done. The result of analysis in this section presents that the hypothesis of absence of dissimilarity of variance between disturbances of the estimated phrases, cannot be rejected. Additional analysis confirm that equality of the coefficient in linear and nonlinear model is rejected. Finally the Jarque-Bera test confirm that the disturbance phrases have a normal distribution.
The basic results of this study have a good compatibility with foundations of theoretical and also the result of studies of Uge Panizza (1999), Rafael Gomez & David K. Foot (2003). Angles – castro, Gerardo (2006), and Ben – David Nissim (2007).

Keywords

References

ابریشمی، حمید؛ مهرآرا، محسن و خطابخش، پریسا (1384)؛ «بررسی رابطه رشد و توزیع درآمد در ایران»، پژوهشنامه علوم انسانی و اجتماعی، شماره 17: 52-13.
ابونوری، اسماعیل و خوش‌کار، آرش (1385؛ «اثر شاخص‌های اقتصاد کلان بر توزیع درآمد در ایران: مطالعه بین استانی»، فصلنامه تحقیقات اقتصادی، شماره 77: 95- 65.
احمدی، علی‌محمد و شقاقی شهری، وحید (1386)؛ توسعه اقتصادی و برنامه‌ریزی، انتشارات نور علم، همدان. بانک مرکزی جمهوری اسلامی ایران، پایگاه داده­های سری زمانی ملی ایران. سال‌های 1393-1350.
بانویی، علی‌اصغر (1384)؛ «بررسی رابطه بین توزیع درآمد و افزایش تولید در اقتصاد ایران با استفاده از ماتریس حسابداری اجتماعی»، پژوهش‌های اقتصادی ایران، شماره 23: 95-117.
پروین، سهیلا (1385)؛ «نقش انواع درآمدها در نابرابری توزیع درآمد در ایران»، فصلنامه تحقیقات اقتصادی، شماره 75: 130-111.
خالدی، کوهسار و صدرالاشرافی، سید مهریار (1384)؛ «بررسی رابطه متقابل رشد اقتصادی بخش کشاورزی و توزیع درآمد در مناطق روستایی ایران»، فصلنامه علوم کشاورزی، شماره 11: 25-39.
راغفر، حسین؛ باباپور، میترا و یزدان‌پناه، محدثه (1394)؛ «بررسی رابطه رشد اقتصادی با فقر و نابرابری در ایران طی برنامه­های اول تا چهارم توسعه»، فصلنامه مطالعات اقتصادی کاربردی ایران، شماره 16: 79-59.
شهیکی ‌تاش، محمدنبی و دهقانی، علی (1387)؛ «بررسی توزیع درآمد در ایران با رویکرد پارامتریک»، نامه مفید، شماره 66: 149-168
صابر نورایی، مهران و ارسلان بد، محمدرضا (1394)؛ «رابطه رشد اقتصادی و درآمد در ایران، سومین کنفرانس بین­المللی اقتصاد، مدیریت و حسابداری».
صادقی، حسین و مسائلی، ارشک (1384)؛ «رابطه رشد اقتصادی و توزیع درآمد با روند فقر در ایران با استفاده از رویکرد فازی»، فصلنامه رفاه اجتماعی، شماره 28: 172-151.
صادقی، حسین و مهرگان، نادر (1379)؛ «رشد اقتصادی در بخش کشاورزی و توزیع درآمد روستایی»، فصلنامه اقتصاد کشاورزی و توسعه، شماره 31: 70- 57.
صمدی، سعید (1378)؛ کاهش فقر، کارایی و برابری در ایران، رساله دکتری، دانشکده اقتصاد دانشگاه تهران.
گرجی، ابراهیم و برهانی­پور، محمد (1387)؛ «اثر جهانی‌شدن بر توزیع درآمد در ایران»، فصلنامه پژوهش‌های اقتصادی ایران، 10 (34): 124- 99.
مهدوی عادلی، محمدحسین و رنجبرکی، علی (1384)؛ «بررسی رابطه بلندمدت بین رشد اقتصادی و توزیع درآمد در ایران»، فصلنامه پژوهش‌های اقتصادی، شماره پیاپی 18: 137-113.
مهرگان، نادر؛  اصغرپور، حسین؛ صمدی، رویا؛ و پورعبادالهان، محسن (1388)؛ «رابطه حداقل دستمزد با توزیع درآمد در ایران»، رفاه اجتماعی، 9(33):45-64.
مهرگان، نادر؛ موسایی، میثم و کیهانی، حکمت رضا (1387)؛ «رشد اقتصادی و توزیع درآمد در ایران»، فصلنامه رفاه اجتماعی، شماره 28: 77-57.
Aghion, Ph. Caroli, E. Garcia-Penalosa, C. (1999); "Inequality and economic growth: the perspective of the new growth theories," CEPREMAP Working Papers (Couverture Orange) 9908, CEPREMAP.
Aguiar de Medeiros, C. Trebat, N. (2016); Latin America at a Crossroads: Controversies on Growth, Income Distribution and Structural Change, Institute of Economics, UFRJ.
Anand, S. Kanbur, S. M. R. (1993); "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, 40(1): 25-52, February. Abhijit V.
Angles castro, G. (2006); “The relationship between economic growth and inequality: evidence frome the age of market liberalism“, Proceedings of the German Development Economics Conference, Berlin, 2, Research committee Development economics.
Ben – David N. (2007), “Economic growth and its effect on income distribution “, Journal of Economic studies, Volume, 34: 42-58.
Berry, A. Serieux, J. (2006); “Reading the Elephants: The Evolution of world Economic Growth and Income distribution at the End of the twentieth Century (1980 – 2000), Avalable at: Http: // ideas. repec. Org / p / une / wpaper / 27. htm /
Blagun, I. S. Dmitrishin, L. I. (2012); Modeling the Relationship of "Income Inequality - Economic Growth" by Using the Theory of Cascading Benefits, The Problems of Economy, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), issue 4, pages 216-221.
Burz, R. Bogdan, I. B. (2012); Sustainability of Economic Growth and Inequality in Incomes Distribution, Annals of Faculty of Economics, University of Oradea, Faculty of Economics, 1(1: 249-254, July.
Claudio, M. (2003); “Long – Run Growth and Income distribution: Evidence For Italy and the us“, Journal of Giornale degli Economistse Annali di Economia, 62:171- 210.
Doessel, D.P. Valladkhani, A. (1998); “Economic Development and Institutional Factors Affecting Income Distribution: The Case of Iran, 1967-1993”, International Journal of Social Economics, Vol.25.
Duo Qin, Cagas, M. A. Ducanes. G, X. He, Liu. R. Shiguo, L, (2009); Effects of Income inequality on China’s economic growth, Journal of Policy Modeling, Vol 31.
Erika L. (2011); Relations Between Unequal Income Distribution, Economic Growth and Income Poverty - Latest Findings in Current Economics, University of Economics, Prague, 2011(4): 3-24.
Giuseppe, A. Gianfranco P. (2005); "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ISAE Working Papers 51, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
Gomez R. Foot, D. K. (2003); “ Age Structure, Income Distribution and Economic Growth“, European university Institute (EBU) Robert Schuman Center of Advanced Studies (RSCAS), 2003 Avalable at: http: // ideas. Org / a / cpp / issued / VZ9y2003 is / p / 41 – 192. Html. Journul of Canadian Public Policy, Vol. XXIX, PP 141 – 161.
Hongyi, L. Lixin, colin, Xu. Heng–fu, Z., (2000); “Corruption, Income distribution and Growth“, Journal of Economics and Politics 12: 155–182.
Klaus S. H. (2012); The Political Economy of Distribution and Growth in Chile, Instituto de Economia. Pontificia Universidad Católica de Chile.
Mark, D. P. (2005); “Does Income distribution Affect U. S. sate Economic Growth? “, Journal of Regional Science, 45: 363- 394.
 Mehmet, M. Ozlem, A. A. (2013), The Relationship between Economic Growth and Income Distribution in Turkey and the Turkish Republics of Central Asia and Caucasia: Dynamic Panel Data Analysis with Structural Breaks, Eurasian Economic Review, Eurasia Business and Economics Society, 3(2): 165-182, Fall.
Panizza, U. (2002); "Income Inequality and Economic Growth: Evidence from American Data" Journal of Economic Growth, Springer, 7(1: 25-41, March.
Paci, P. Sasin, M. J., verbeek, J. (2004); “Economic growth, income distribution, and poverty in Poland during transition“, policy Research working paper Series, 3467, The world bank.
Richard H. Adams, Jr., (2003); “Economic growth, Inequality and poverty: Findings From a new data set“, policy Research working paper Series, 2972, The world Bank.
Rodrik, D. Alesina, A. (1994); "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
Sarigiannidou M. Palivos, T. (2012); A Modern Theory of Kuznets’ Hypothesis, Working Papers, 201202, Texas Christian University, Department of Economics.
Sommer, M. (2008); "Understanding the trends in income, consumption and wealth inequality and how important are life-cycle effects?," Sonderforschungsbereich 504 Publications 08-12, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
Uge P. (1999); “Income Inequality and economic Geowth: Evidence from the American Data“, RES working papers 4178, Inter – American Development Bank, Research Department.
Journal of Applied Economics Studies in Iran
Volume 6, Issue 21
May 2017
Pages 213-236

Files

Share

How to cite

Statistics