Abstract: (8032 Views)
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.
Type of Study:
orginal |
Received: 2011/09/18 | Published: 2011/04/15