Investigating the Non-linear Effects of Government Size on Multidimensional Poverty in Developing Countries (An Ap-proach of the GMM Method)

Document Type : Scientific paper

Authors

1 Lorestan University, Khorramabad, Iran

2 Associate Professor, National Research Institute of Oceanography and Atmospheric Sciences, Tehran, Iran

3 Assistant Professor of lorestan. Khorramabad. Iran

Abstract

The effects of government size on multidimensional poverty as an important factor in the development and growth of countries has a decisive role, and various aspects and areas in developing countries have always been affected by this category. Accordingly, one of the most important goals of economic planners is to reduce the size of the government to prevent the spread of poverty, especially multidimensional poverty. Without taking into account the different dimensions of poverty, it is impossible to accurately analyze poverty and its effects on societies. Therefore, the present research aims to evaluate the effects of government size on multidimensional poverty in Iran and selected developing countries from 2012 to 2021 using the generalized moments method. The results of the study indicate that the government size index has a non-linear effect on multidimensional poverty. The government size index at its low levels has left a negative impact on multidimensional poverty, but the increase in the level of the government size index and its crossing of the threshold level of 18.33 has caused the aggravation of multidimensional poverty. On the other hand, the first break of multidimensional poverty has a positive effect, and control of corruption and public health has a negative effect on multidimensional poverty. Moreover, considering the effect of corruption control and public health on reducing multidimensional poverty, necessary institutional reforms are suggested to improve social security, promote transparency, improve corruption control factors, and increase public health in various fields.

Keywords

Main Subjects

References

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Macroeconomics Research Letter
Volume 18, Issue 38
December 2023
Pages 103-130

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History

  • Receive Date: 06 November 2023
  • Revise Date: 31 December 2023
  • Accept Date: 04 January 2024

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