Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

---

Objective: How indicators of poverty have reacted to the economic variables in urban areas? The intensity of each of these economic variables on urban poverty is to what extent? The main purpose of this study is assessing "the effect of macroeconomic variables on urban poverty". Method: The study is based on macroeconomic data over the years 1984 to 2006 and developed an econometric model identifying the effect of economic variables on poverty in urban areas. First the relationship between economic variables and poverty as general was expressed, and then, for the analysis of the role of economic variables on urban poverty, an econometric model is created. Findings: The increase in GDP per capita, construction and current costs of state, and direct and indirect taxation cause to decrease urban poverty, while the increase in unemployment rate cause to increase urban poverty. Conclusion: Unemployment rate causes to increase both poverty indexes in urban areas, although its effect on head count index is more. The unemployment is considered as the main factor of poverty in urban areas. The effect of unemployment rate on the percentage of the poor is higher than the poverty gap.

Keywords: factors of urban poverty, poverty gap index, the head count index, urban poverty.

Full-Text [PDF 400 kb]   (4183 Downloads)