Investigating the Effect of Commercial Liberalization and the Quality of Human Resources on the Gini Coefficient in Rural Areas of Iran

The rural areas of Iran are known as the most important hubs for the production of agricultural products. Considering that income distribution has an effect on the level of poverty and economic well-being of rural people, knowing the factors affecting how income is distributed in the rural areas of the country will be necessary to develop poverty alleviation policies. Identifying these factors will pave the way for appropriate measures in the first place to improve the pattern of rural income distribution and in the second place to reduce rural poverty in Iran. The purpose of this research is to investigate the effect of trade liberalization and the quality of human resources on the Gini coefficient in rural areas of Iran for the period of 1971-2020. For this analysis, Vector Autoregressive Model, Johansson-Juselius method Engel-Granger method and Vector Error Correction Model are used. The findings of the research based on The coefficient of the error correction method indicates that about 0.61 of the short-term imbalance is adjusted in each period to achieve the long-term equilibrium, and it can be said that in the long-term, a one percent increase in the variables. The quality of human resources (literacy rate of farmers) and the relative income of agriculture causes a decrease of 2.78 and 2.03 percent in the inequality of income distribution, respectively, and a one percent increase in the economic growth variables of the agricultural sector, the government's construction expenditures for agriculture, the index The degree of commercial openness and the ratio of agricultural investment cause an increase of 68%, 0.51%, 2.85% and 1.18% respectively in the inequality of income distribution, and among the types of variables mentioned, the effect of the index of the degree of commercial openness on the inequality of distribution income is more compared to other variables.