Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran

According to the Ahlowalia hypothesis (1995), the growth oftotal factor productivity (TFP) beside infrastructure investmentsof government lead to income inequality decrease in ruralareas of countries. The main objective of this study is toinvestigate the effects of public investments such as agricul...

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Main Author: Ali Bagherzadeh
Format: Article
Language:English
Published: Islamic Azad University 2012-03-01
Series:International Journal of Agricultural Management and Development
Subjects:
Online Access:http://www.ijamad.com/2(no1)/IJAMAD8-2(1).pdf
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author Ali Bagherzadeh
author_facet Ali Bagherzadeh
author_sort Ali Bagherzadeh
collection DOAJ
description According to the Ahlowalia hypothesis (1995), the growth oftotal factor productivity (TFP) beside infrastructure investmentsof government lead to income inequality decrease in ruralareas of countries. The main objective of this study is toinvestigate the effects of public investments such as agriculturalR&E, road, education and irrigation on income inequality inrural areas of Iran. In order to get results, we used ARDLmethod and time series data of 1980 to 2008. However, thisresearch attempts to survey the direction of causality betweenthe income inequality and total factor productivity (TFP) inIran. Empirical results show there is a negative relation betweenincome inequality and agricultural TFP in rural areas of Iran.Hence, additional investments on rural education and agriculturalR&E have significance and different impacts on income inequality.Findings showed Ahlowalia hypothesis developed forthe relation among income inequality, TFP and investment inelectricity is not rejected in case of Iran`s rural areas.
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spelling doaj.art-0a6879b1d67e4221aae670c4896417862022-12-21T20:25:43ZengIslamic Azad UniversityInternational Journal of Agricultural Management and Development2159-58522159-58602012-03-01217178Study of Effective Factors on Income Inequality Decrease in Rural Areas of IranAli BagherzadehAccording to the Ahlowalia hypothesis (1995), the growth oftotal factor productivity (TFP) beside infrastructure investmentsof government lead to income inequality decrease in ruralareas of countries. The main objective of this study is toinvestigate the effects of public investments such as agriculturalR&E, road, education and irrigation on income inequality inrural areas of Iran. In order to get results, we used ARDLmethod and time series data of 1980 to 2008. However, thisresearch attempts to survey the direction of causality betweenthe income inequality and total factor productivity (TFP) inIran. Empirical results show there is a negative relation betweenincome inequality and agricultural TFP in rural areas of Iran.Hence, additional investments on rural education and agriculturalR&E have significance and different impacts on income inequality.Findings showed Ahlowalia hypothesis developed forthe relation among income inequality, TFP and investment inelectricity is not rejected in case of Iran`s rural areas.http://www.ijamad.com/2(no1)/IJAMAD8-2(1).pdfInfrastructure investmentIncome inequalityAhlowalia hypothesisTFP
spellingShingle Ali Bagherzadeh
Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran
International Journal of Agricultural Management and Development
Infrastructure investment
Income inequality
Ahlowalia hypothesis
TFP
title Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran
title_full Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran
title_fullStr Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran
title_full_unstemmed Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran
title_short Study of Effective Factors on Income Inequality Decrease in Rural Areas of Iran
title_sort study of effective factors on income inequality decrease in rural areas of iran
topic Infrastructure investment
Income inequality
Ahlowalia hypothesis
TFP
url http://www.ijamad.com/2(no1)/IJAMAD8-2(1).pdf
work_keys_str_mv AT alibagherzadeh studyofeffectivefactorsonincomeinequalitydecreaseinruralareasofiran