Poverty traps in natural resource based economy: case of Iran
Poverty traps as vicious circles preserve people‘s poverty and undermine the poor effort to overcome their own misery. This paper presents an empirical test for a subclass of poverty traps hypotheses. This test is based on the production function to generate multiple equilibrium, while must be prese...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2012-06-01
|
| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_954_90925f48db45b7b4879dd7b5c5506490.pdf |
| _version_ | 1827398381850329088 |
|---|---|
| author | Hosein Raghfar Hamid Kurd Bache Marzie Paktinat |
| author_facet | Hosein Raghfar Hamid Kurd Bache Marzie Paktinat |
| author_sort | Hosein Raghfar |
| collection | DOAJ |
| description | Poverty traps as vicious circles preserve people‘s poverty and undermine the poor effort to overcome their own misery. This paper presents an empirical test for a subclass of poverty traps hypotheses. This test is based on the production function to generate multiple equilibrium, while must be present in the region between the equilibrium. Therefore, increasing returns should be strongest when the economy is transiting between steady state than when it is at or near in one of those steady states. We implement this idea by estimating the degree of increasing returns during growth accelerations and growth transitions for a panel of developing and developed economies using World Bank Industrial data. Results of this study show that economies of scale occur where there is collapse in growth. Nevertheless, there are no criteria to distinguish transitory ranges from non-transitory ones. Although, this assumption confirmed economies of scale in industry result in poverty traps. |
| first_indexed | 2024-03-08T19:27:48Z |
| format | Article |
| id | doaj.art-a8f9336d6d1c4b9d83c35bd06cb9eb8c |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:27:48Z |
| publishDate | 2012-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-a8f9336d6d1c4b9d83c35bd06cb9eb8c2023-12-26T07:57:51ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532012-06-011245143171954Poverty traps in natural resource based economy: case of IranHosein Raghfar0Hamid Kurd Bache1Marzie Paktinat2Assistant professor of economics, University of AzahraAssistant professor of economics, University of economic sciencesM.S of economics, University of AzahraPoverty traps as vicious circles preserve people‘s poverty and undermine the poor effort to overcome their own misery. This paper presents an empirical test for a subclass of poverty traps hypotheses. This test is based on the production function to generate multiple equilibrium, while must be present in the region between the equilibrium. Therefore, increasing returns should be strongest when the economy is transiting between steady state than when it is at or near in one of those steady states. We implement this idea by estimating the degree of increasing returns during growth accelerations and growth transitions for a panel of developing and developed economies using World Bank Industrial data. Results of this study show that economies of scale occur where there is collapse in growth. Nevertheless, there are no criteria to distinguish transitory ranges from non-transitory ones. Although, this assumption confirmed economies of scale in industry result in poverty traps.https://joer.atu.ac.ir/article_954_90925f48db45b7b4879dd7b5c5506490.pdfpoverty trapsgdp per capita.poverty trapsmultiple equilibriumsgdp per capita |
| spellingShingle | Hosein Raghfar Hamid Kurd Bache Marzie Paktinat Poverty traps in natural resource based economy: case of Iran Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī poverty traps gdp per capita.poverty traps multiple equilibriums gdp per capita |
| title | Poverty traps in natural resource based economy: case of Iran |
| title_full | Poverty traps in natural resource based economy: case of Iran |
| title_fullStr | Poverty traps in natural resource based economy: case of Iran |
| title_full_unstemmed | Poverty traps in natural resource based economy: case of Iran |
| title_short | Poverty traps in natural resource based economy: case of Iran |
| title_sort | poverty traps in natural resource based economy case of iran |
| topic | poverty traps gdp per capita.poverty traps multiple equilibriums gdp per capita |
| url | https://joer.atu.ac.ir/article_954_90925f48db45b7b4879dd7b5c5506490.pdf |
| work_keys_str_mv | AT hoseinraghfar povertytrapsinnaturalresourcebasedeconomycaseofiran AT hamidkurdbache povertytrapsinnaturalresourcebasedeconomycaseofiran AT marziepaktinat povertytrapsinnaturalresourcebasedeconomycaseofiran |