The spatial effect of education on the poverty line in the provinces of Iran

Document Type : Research Article

Authors

1 Department of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

2 departmant of economics faculty of economics and manegment

10.22084/aes.2024.28736.3659

Abstract

In the 21th century, one of the indicators that show urban progress is the low level of poverty in these areas. One of the ways to achieve this goal is to increase educational expenses. which is investigated in this study. Therefore, this study seeks to spatially evaluate the effect of the variables of education costs, growth rate and unemployment rate on the reduction of poverty among urban families in the provinces of Iran and in the period of 2006-2019. In this study, the SGMM-DPD-SAR generalized moment dynamic panel model will be used to investigate the statistical tests using two-stage Arellano-Bover / Blundell-Bond coefficients. The obtained results confirm that, according to the phenomenon of the vicious circle of poverty, the first interval of the dependent variable has a positive effect on poverty with a coefficient of 0.91. The first spatial interval of SAR is also positive and significant 0.06, which shows that there is a positive spatial dependence between the provinces of Iran, that is, the effects of the explanatory variables on the dependent variable have spatial and regional effects. According to the human capital theory of Baker and Schultz, the development of human resources through programs such as education and health emphasizes the reduction of poverty, where the cost of education leads to the reduction of poverty in households with a factor of 0.04, economic growth with The coefficient of 0.01 has a negative and significant effect on the severity of poverty in Iran; And there is also a negative relationship between economic growth and the Amartyasen index, that is, economic growth has positive effects on the rate of poverty reduction in Iran. Unemployment rate also increases poverty with a factor of 0.06.

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Journal of Applied Economics Studies in Iran

Articles in Press, Accepted Manuscript
Available Online from 21 February 2024

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