The Investigation of Government Expenditure Impacts on Rural Poverty in Iran Print

This study analyzes the impacts of various types of government expenditures on rural poverty in Iran, by using a system of equations including variables affecting on rural poverty such as agriculture labor productivity, employment in rural area, rural-urban migration and access to economic infrastructures and social (electricity, water, telephone) (education attainment, and health) infrastructures and time series data (1984-2009). The results reveal that different types of public Expenditures have various effects on poverty in rural areas. Public investments on water, health and road have the most positive impacts on rural poverty reduction. Government expenditures on water, agricultural R&D, education, health and road improve agricultural productivity growth. Public Expenditures on developing education infrastructures, health and transportation increased employment rate in rural area. Expenditures on water, health and road led to reduce rural-urban immigrate.