Investigating the effect of agricultural investment on poverty, income distribution and migration in rural areas of Iran

Subject Areas : پژوهش‌های اقتصاد روستا

Mostafa Baniasadi ¹ (دانشجوی دکتری، بخش اقتصاد کشاورزی و عضو انجمن پژوهشگران جوان دانشگاه شهید باهنر کرمان)
Reza Mohseni ² (استادیار دانشکده علوم اقتصادی و سیاسی، دانشگاه شهید بهشتی)

Received: 2014-12-02 Accepted : 2015-01-20 Published : 2015-07-23

Keywords: agricultural sector, Simultaneous system of equation, Gini Coefficient, rural economics,

Abstract :

Agricultural sector has a significant role in poverty reduction, employment and generally in rural economy. Therefore, investment in this sector is controversial. Agricultural investment causes production growth, poverty reduction and increasing in employment, reducing the rural migration trend, as well. The aim of the present study is to survey the relationship between agricultural investment and poverty, income distribution and migration in rural areas of Iran during 1981-2007. To this purpose, simultaneous system of equation was used. The results indicated that investment in agricultural sector would lead to reduction in poverty, in Gini coefficient and in rural migration. So it is suggested that policymakers have to pay special attention to investment in agriculture sector.