Effects of Macroeconomic Variable on Poverty in Iran Application of Bootstrap Technique

It is believed that the level of poverty is significantly affected by macroeconomic variables, such as inflation, government expenditure and unemployment rate. In this paper attempt has been made to investigate how macroeconomic variables affect the level of poverty in Iranian society. Our findings indicate that the economic growth has no significant effects on poverty intensity in Iran.In addition, there is a negative association between poverty and growth, namely increasing the growth rate leads to poverty reduction. The results of this study have also shown that unemployment and inflation have positive effects on poverty, while social security expenditure relative to government expenditure has no meaningful effects on poverty. In this study bootstrap technique is used to check the validity of the results.