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Moftakhari A. (2024). Non-linear effects of social welfare on multidimensional poverty in developing countries. refahj. 23(91), : 2 doi:10.32598/refahj.23.91.2011.2
URL: http://refahj.uswr.ac.ir/article-1-4160-en.html
URL: http://refahj.uswr.ac.ir/article-1-4160-en.html
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Introduction: Examining the effects of social welfare on multidimensional poverty as a social phenomenon plays a decisive part in the development and growth of countries. In addition, various aspects in developing countries have always been influenced by this category. The emergence of multi-dimensional poverty causes retardation in the development process, weakening of the knowledge base, waste of education costs, destruction of social, and human capital, and ultimately weakening of economic and social foundations. Therefore, examining the results of the effects of social welfare on multidimensional poverty in these countries can provide a suitable solution to solve or correct the problems caused by this important phenomenon, and by creating a suitable mechanism and a coherent program, it can prevent the loss of human capital. Low social welfare has an undeniable impact on the multidimensional poverty of households. On the other hand, multidimensional poverty reduces social capital and causes economic, social, and even political problems in different societies. Although poverty affects all groups, it most strongly affects those with limited access to resources and is not limited to any geographic region, income level, or age group. Of course, this poverty is more visible in developing societies.
Method: In order to test the hypothesis and investigate the impact of social welfare on multi-dimensional poverty, EViews software and econometric techniques combined with sections and time periods have been used. Also, in this research, the Generalized Method of Moment (GMM) proposed by Blundell and Bond was used. In fact, it can be said that the GMM is one of the appropriate estimation methods in tabular data, so that this method considers the effects of dynamic adjustment of the dependent variable. Using this method in dynamic panel data has advantages such as taking into account individual heterogeneity and more information, removing bias in cross-sectional regressions, which leads to more accurate estimates with higher efficiency and less linearity. In general, the GMM is more suitable than other methods for at least three reasons: endogenous variables can also be used in this method. One of the ways to control the endogeneity of variables is to use an instrumental variable. An instrument will have the necessary power when it has a high correlation with the variable under investigation, while having no correlation with the error components. However, such a tool is very difficult to find. One advantage of GMM method is that it allows the interruption of these variables to be used as appropriate means to control the endogeneity. The second advantage of this method is that the dynamics of the investigated changeable are considered in the model, and the third advantage is that this method can be used in time series, cross-sectional and panel data.
Findings: The social welfare index has a non-linear and threshold effect on multidimensional poverty. Since the social welfare index has a non-linear effect on multidimensional poverty and considering that the social welfare coefficient is positive and the social welfare square coefficient is negative, therefore the social welfare index has a certain effect on multidimensional poverty at low levels. However, the increase in the level of social welfare index and its crossing over the threshold level in the society has led to the decrease of multidimensional poverty in the studied countries. In other words, as long as the social welfare index is less than 27.59, the level of social welfare is low and multidimensional poverty will intensify. But if the level of the social welfare index is higher than the mentioned threshold, the trend of multidimensional poverty will be reduced, indicating the importance of the impact of social welfare on multidimensional poverty in a country, corruption control over multidimensional poverty has a negative and significant effect. According to the obtained coefficients, the role of corruption control in reducing multidimensional poverty is evident. Corruption is a force that harms the proper functioning of the markets and disrupts the market system, thereby reducing economic growth and aggravating poverty. Public health has had a negative and significant impact on multidimensional poverty. Regarding this factor and its impact on multi-dimensional poverty reduction, it can be said that public health is defined to increase the quality of life through disease prevention and treatment, including monitoring health problems and indicators, as well as promoting health-oriented behaviors. There is a striking difference between developed and developing nations in terms of achieving public health and health care innovations.
Discussion: As rge results of the research suggest, measures should be taken into account in the target countries. The implementation of social welfare in order to reduce multidimensional poverty, for example, universal education, improvement and access to health and public health, and creation of employment and career services, is one of the most important factors of this category in developing countries. Other things include paying special attention to the economic issues of the target communities, expanding the spirit of cheerfulness and hope, inter-departmental cooperation to improve the level of knowledge, future research, eliminating parallel and inefficient structures in the field of research and research, paying attention to the capacity of educational centers and academic, training of expert staff and their retention, social support, responsibility and social demands at different academic levels, reducing the psychological pressure of academic and work environments, using the capacity of mass media in order to raise the culture of paying attention to the capacity. The elites of the society, order and sense of social security, attention to the leisure time and intellectual and mental peace of the elites, technical and professional trainings to raise the knowledge level of experts, stable employment and interactive empowerment at the international level and suitable insurance coverage for the expert and elite community pointed out. Also, considering the effect of the second power of social welfare, corruption control and public health on the reduction of multidimensional poverty, necessary institutional reforms are suggested to improve social security, ensure competition, promote transparency, improve the factors that strengthen political stability and increase the level of public health in various fields.
Ethical consideration Authors Contribution
The author alone wrote the article.
Financial Resources
In order to publish the article, it has not received direct or indirect financial support
from any organization.
Following Principles of Research Ethics
All of data has gathered with participants’ prior consent, remaining anonymous.
In addition, I have obeyed all of research principles including piracy, manipulation
etc.
Method: In order to test the hypothesis and investigate the impact of social welfare on multi-dimensional poverty, EViews software and econometric techniques combined with sections and time periods have been used. Also, in this research, the Generalized Method of Moment (GMM) proposed by Blundell and Bond was used. In fact, it can be said that the GMM is one of the appropriate estimation methods in tabular data, so that this method considers the effects of dynamic adjustment of the dependent variable. Using this method in dynamic panel data has advantages such as taking into account individual heterogeneity and more information, removing bias in cross-sectional regressions, which leads to more accurate estimates with higher efficiency and less linearity. In general, the GMM is more suitable than other methods for at least three reasons: endogenous variables can also be used in this method. One of the ways to control the endogeneity of variables is to use an instrumental variable. An instrument will have the necessary power when it has a high correlation with the variable under investigation, while having no correlation with the error components. However, such a tool is very difficult to find. One advantage of GMM method is that it allows the interruption of these variables to be used as appropriate means to control the endogeneity. The second advantage of this method is that the dynamics of the investigated changeable are considered in the model, and the third advantage is that this method can be used in time series, cross-sectional and panel data.
Findings: The social welfare index has a non-linear and threshold effect on multidimensional poverty. Since the social welfare index has a non-linear effect on multidimensional poverty and considering that the social welfare coefficient is positive and the social welfare square coefficient is negative, therefore the social welfare index has a certain effect on multidimensional poverty at low levels. However, the increase in the level of social welfare index and its crossing over the threshold level in the society has led to the decrease of multidimensional poverty in the studied countries. In other words, as long as the social welfare index is less than 27.59, the level of social welfare is low and multidimensional poverty will intensify. But if the level of the social welfare index is higher than the mentioned threshold, the trend of multidimensional poverty will be reduced, indicating the importance of the impact of social welfare on multidimensional poverty in a country, corruption control over multidimensional poverty has a negative and significant effect. According to the obtained coefficients, the role of corruption control in reducing multidimensional poverty is evident. Corruption is a force that harms the proper functioning of the markets and disrupts the market system, thereby reducing economic growth and aggravating poverty. Public health has had a negative and significant impact on multidimensional poverty. Regarding this factor and its impact on multi-dimensional poverty reduction, it can be said that public health is defined to increase the quality of life through disease prevention and treatment, including monitoring health problems and indicators, as well as promoting health-oriented behaviors. There is a striking difference between developed and developing nations in terms of achieving public health and health care innovations.
Discussion: As rge results of the research suggest, measures should be taken into account in the target countries. The implementation of social welfare in order to reduce multidimensional poverty, for example, universal education, improvement and access to health and public health, and creation of employment and career services, is one of the most important factors of this category in developing countries. Other things include paying special attention to the economic issues of the target communities, expanding the spirit of cheerfulness and hope, inter-departmental cooperation to improve the level of knowledge, future research, eliminating parallel and inefficient structures in the field of research and research, paying attention to the capacity of educational centers and academic, training of expert staff and their retention, social support, responsibility and social demands at different academic levels, reducing the psychological pressure of academic and work environments, using the capacity of mass media in order to raise the culture of paying attention to the capacity. The elites of the society, order and sense of social security, attention to the leisure time and intellectual and mental peace of the elites, technical and professional trainings to raise the knowledge level of experts, stable employment and interactive empowerment at the international level and suitable insurance coverage for the expert and elite community pointed out. Also, considering the effect of the second power of social welfare, corruption control and public health on the reduction of multidimensional poverty, necessary institutional reforms are suggested to improve social security, ensure competition, promote transparency, improve the factors that strengthen political stability and increase the level of public health in various fields.
Ethical consideration Authors Contribution
The author alone wrote the article.
Financial Resources
In order to publish the article, it has not received direct or indirect financial support
from any organization.
Following Principles of Research Ethics
All of data has gathered with participants’ prior consent, remaining anonymous.
In addition, I have obeyed all of research principles including piracy, manipulation
etc.
Type of Study: orginal |
Received: 2022/12/24 | Accepted: 2023/10/21 | Published: 2024/02/14
Received: 2022/12/24 | Accepted: 2023/10/21 | Published: 2024/02/14
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