The Income inequality in Iran is mainly influenced by government policy, in particular through budget allocation. This study aims to investigate how the government budget (capital and recurrent expenditure) has impacted on income inequality across the provinces in Iran. More
The Income inequality in Iran is mainly influenced by government policy, in particular through budget allocation. This study aims to investigate how the government budget (capital and recurrent expenditure) has impacted on income inequality across the provinces in Iran. Data used in this study pertain to period 1379- 1398, corresponding to Gregorian calendar (2000 - 2019), and the same has been utilized by employing the Panel Smooth Transition Regression Model (PSTR) to analyze the relationship between government budget allocation and income inequality. The results of the model estimation suggest that government budget allocation (capital and recurrent expenditure) has meaningfully reduced income inequality across the provinces in Iran. These findings align with previous research conducted by Milanovich, Khan and Bashir and Wood, D’Onofrioa et al(2019), which support Kuznets' hypothesis that government budget allocation initially exacerbates income inequality, but over time, with the implementation of supplementary policies, income distribution can improve. In addition to government budget, factors such as level of education (literacy rate), labor participation rate, trade expansion (state trading) have a significant equalizing impact on income distribution. By pursuing a well-targeted foreign trade policy in which economic entrepreneurs and stakeholders benefit from trade expansion, government can pave the way for income inequality to mitigate across the provinces.
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The main objective of this study is to investigate the relationship between different oil products consumption and economic growth in Iran provinces. The basic question is whether the reduction of different oil products consumption caused by subsidy reform plan decelera More
The main objective of this study is to investigate the relationship between different oil products consumption and economic growth in Iran provinces. The basic question is whether the reduction of different oil products consumption caused by subsidy reform plan decelerates the economic growth or not? To answer this question, we use Panel Data model and quarterly data during 2000Q1-2006Q4 at provincial level. The results indicate that gasoline and gasoil consumption have positive and significant effect on economic growth of the provinces, such that the elasticity of provinces products compared to the gasoline and gasoil consumption is 0.22 and 0.19 respectively. The results also represent that the development expenditures of government and population have positive and significant effect on economic growth. The ratio of population elasticity to the production is larger than the ratio of the production elasticity to the development expenditures of government. According to this research, it can be argued that the limitation of oil products consumption can decelerate the economic growth in Iran provinces.
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Abstract This study analyzes fiscal decentralization policies and its environmental consequences, during the period 2005-2015. The results of GMM estimation show that revenue decentralization has negative and significant relationship with pollution. Also other variables More
Abstract This study analyzes fiscal decentralization policies and its environmental consequences, during the period 2005-2015. The results of GMM estimation show that revenue decentralization has negative and significant relationship with pollution. Also other variables results indicate positive relationship between industrialization and energy productivity with pollution. By increasing the relative density of population, pollution is reduced. The results of Environmental Kuznets Curve hypothesis also indicate rejection of this hypothesis. In addition, presence of multiplication of the neighboring matrix in dependent variable causes an increase in pollution in the provincial level and this indicates the spatial environmental effects in the country's provinces. It is suggested that local governments determine their own financial resources, in this case it can be targeted and based on new revenue resources such as green economy, it can define businesses that which they reduce pollution.
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