Assessing the Relationship between Poverty, Income Distribution and Economic Growth in Iran (FLSR Fuzzy approach)

Document Type : Research Article

Authors

1 Associate professor, University of Sistan and Baluchestan, Faculty of Economic and Management, Zahedan, Iran

2 . Ph.D. in Economics, Department of Economics University of Sistan and Baluchestan, Faculty of Economic and Management, Zahedan, Iran

Abstract

Eliminating poverty and reducing income inequality is the most difficult task of economic policy making when considered with an economic growth. Therefore, the impacts of economic growth and development on income distribution largely depend on the growth model. Thus, determining an effect of economic growth on poverty is uncertain and relies on its country's growth pattern. The basic question of this paper which we are looking for is that have economic growth and income distribution had an impact on the poverty in Iran? To respond the question, we employed fuzzy regression for analyzing the variables relationship. The article also under the fuzzy logic presents an analytical framework at the aim of appraising the relationship between poverty, income distribution and economic growth. The results show that there is a positive relationship between the economic growth and poverty, in other words the economic growth has had negative impacts on the poverty reduction in Iran. Computational results based on fuzzy logic in Iran implies that the most ideal conditions come when the economic growth is 8 percent on overage and Gini coefficient is nearly 38.5 percent.

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References

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Journal of Applied Economics Studies in Iran
Volume 10, Issue 38
June 2021
Pages 39-54

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