Impact of Targeted Subsidies Implementation on Inequality in Iranian Rural Area (Case Study: Villages of Neishabour County)

Journal of Research and Rural Planning

مقاله 4، دوره 10، شماره 2 - شماره پیاپی 33، پاییز 2021، صفحه 51-77  

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/JRRP.V10I2.86000

نویسندگان

Majid Hamzehi؛ Aliakbar Anabestani ؛ Jafar Javan

Ferdowsi University of Mashhad

چکیده

Purpose-The implementation of targeted subsidies policy in Iran is among the actions that, have been taken with the aim of reduction of poverty, reducing social class differences between different deciles of society and specially upgrading rural indicators in rural areas. The present study has been conducted with the purpose of evaluating the impacts of targeted subsidies on expansion of inequality in rural areas.
Design/methodology/approach -This fundamental-exploratory research has been done by descriptive-analytical method. The required data were collected through both field and documentary methods. In this study, first, the research indicators were investigated during two six-year courses before targeted subsidies (2005-2010) and after targeted subsidies (2011-2016) at the level of all villages in the country and the average of each indicator was compared between the two periods before and after targeted subsidies and then the obtained results of this part were compared with the results of field research in the study sample. In this study, 22 villages of Neishabour county were selected as a sample by systematic random method using Cochran's formula.
Finding- Findings of this study show that cash subsidies accounted for 7.56% of a household income portfolio in the case study in 2019. But the Gini coefficient in the period after targeted subsidies was higher than the period before the targeted subsidies, while the ratio of 10% 0f the wealthiest to 10% of the poorest population in the rural areas of the sample in 2018 was equal to 20.67. Also, despite the original goal of targeted subsidy plan, the lower deciles are far more pressured by rising energy prices, and household food expenditures are spent on food groups. However, the average caloric intake of each person in the tenth decile is seven times that of the first decile. Also, in 70% of the households of the first decile, there were no employed people. In general, the villages of the country have faced a worsening situation in seven indicators, both in the macro dimension and in a case study, but an improvement has been observed in case of one indicator.

کلیدواژه‌ها

Targeted subsidies؛ Inequality in rural areas؛ Structural Adjustment policies؛ Neishabour؛ Iran

مراجع

1. Ahmadi, A., Mojaradi, Gh., & Badsar, M. (2016). Examining the economic and social effects of the targeted subsidies regulation on the quality of the lives of rural households in Urmia County. Quarterly of Studies on Agriculture Promotion and Instruction, 9(3), 43-54. [In Persian] https://jaeer.srbiau.ac.ir/ article_10378.html
2. Ali Madadi, A., Nazari. A., Moradi, M., & Ghaffari, R. (2016). The effects of the targeted subsidies plan on consumption patterns of rural households through sustainable livelihood approach in Kalat and Binaloud Counties, Journal of Space Economy and Rural Development, 5(16), 99-120. [In Persian] http://serd.khu.ac.ir/article-fa.html
3. Azizpour, F., Javan, F., & Hajjipoor, M. (2017). The role of structural adjustment on transformation of rural economy in Rezvanshahr area. Human Geography Studies Publication, 51(1), 159-175. [In Persian] https://jhgr.ut.ac.ir/article_63216.html
4. Dadgar, Y., & Mazri, R. (2011). Welfare analysis of subsidies policies in the Iranian economy. Social Welfare Quarterly, 11(42), 337-380. [In Persian] http://refahj.uswr.ac.ir/articlefa.html
5. Dini Torkamani, A. (2005). Subsidies, growth and poverty. Scientific and Research Journal of Social Welfare, 5(18), 12-21. [In Persian] http://refahj.uswr.ac.ir/article-fa.html
6. Fotros, M.H., & Shahbazi, F. (2016). Examining the process of poverty and inequality in the Iranian rural regions in the period of 1974-2014. Journal of Agricultural Economy Research. 8(30), 133-155. [In Persian] http://jae.miau.ac.ir/article_1992.html
7. Ganji, B., Majidzadeh, R., Akbar Beigi, S., Moshafagh, Z., & Soleimani, M. (2015). Political economy of targeted subsidies in Iran (2^nd). Tehran: Perkas Publishing. [In Persian]
8. Hedaia, M., Nosair, R., & Yoon, S. (2016). Impact of the energy subsidy removal in 2014 on the all-income groups and poverty in Egypt. See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/304014198
9. Henry de Frahan, B., Balié, J., & Tuyishime, C. (2018). Income and welfare effects of input subsidies across representative agricultural households of rural Rwanda. In 30th International Conference of Agricultural Economists (ICAE 2018): New Landscapes and New Mandates for Agriculture.
10. Hosseini Nasab, E., & Hazeri Nayeri, H. (2012). Analyzing the Calculable general balance of the effect of modifying subsidies on energy carriers on inflation and gross domestic production. Economic Growth and Development Studies Quarterly, 2(7), 18-47. [In Persian] http://egdr.journals. pnu.ac.ir/ article_125.html
11. Hosseini, H. M., & Kaneko, S. (2012). A general equilibrium analysis of the inflationary impact of energy subsidies reform in Iran (No. 2-8). Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
12. Hosseini, M.A. (2005). Estimating the range of traction of petroleum demand in Iran. Economic Research and Policies Quarterly, 13(33), 1-12. [In Persian] https://www.ical.ir//UploadedData/284/Contents/ 636775351238894041.pdf
13. Jellema, J., Lustig, N., Haas, A., & Wolf, S. (2016). The impact of taxes, transfers, and subsidies on inequality and poverty in Uganda. International Growth Centre., Designed by soapbox.co.uk
14. Khaneh Mellat News Agency. (2009). Targeted subsidies: From presentation to the parliament to communication to the government; Retrieved on 19/2/2020 from: https://www.icana.ir/Fa/News/52236 [In Persian]
15. Khorsandian, E. (2010). A roundtable on targeted subsidies, implications and monetary policies; Monthly Journal of Examinations on Economic Issues and Policies, (7&8), 131-146. [In Persian] http:// ejip.ir/article-1-212-fa.pdf
16. Khosravi Nezhad, A. (2009). Measuring the welfare impacts of removing subsidies on essential goods on urban households of Iran. Business Research Quarterly, 13(50), 1-31. [In Persian] http://pajooheshnameh. itsr.ir/article_13763.html
17. Liu, H., & He, Q. (2019). The effect of basic public service on urban-rural income inequality: a sys-GMM approach. Economic Research-Ekonomska Istraživanja, 32(1), 3205-3223.
18. Mohammadi, A., & Shariati, R. (2018.) Examining the role of inter-group inequality within the whole inequality using the maximum inequality method: Case study of Iranian rural and urban regions. Applied Economy Theories Quarterly, 5(1), 211-233. [In Persian] https://ecoj.tabrizu.ac.ir/article_7729.html
19. Nourallahi, E., Qasemi, M., & Noghani, M. (2015). The effectiveness of targeted subsidies on the quality of lives of rural residents: the case of Ahmadabad area of Mashhad. Space Economy and Rural Development Quarterly, 6(3), 57-80. [In Persian] http://serd.khu.ac.ir/article-1-2898-fa.html
20. Riyahi, V., & Soltanabadi, M. (2018). Economic effects of targeted subsidies on the livelihood of rural households in Khoshab Town. Space Economy and Rural Development Quarterly, 7(1), 77-105. [In Persian] http://serd.khu.ac.ir/article-1-3034-fa.html
21. Sadeghi, H., Taghdisi, A. & Kavoosi, E. (2014). Examining the effects of targeted subsidies on improving the social welfare of rural residents: A case study of Dehdez area of Izeh County. Journal of Urban and Regional Research and Studies, 6(21), 127-147. [In Persian] http://ensani.ir/fa/article/333760/
22. Shahnazi, R., Shahsavar, M.R., & Mobasheri, M.H. (2014). Income distribution and welfare status of households before and after targeted subsidies in Fars Province. Journal of Social Welfare, (54), 167-199. [In Persian] http://refahj.uswr.ac.ir/article-1-1675-fa.pdf
23. Stewart, F. (1997). Economic adjustment and poverty: options and choices (Dini, A. & Ostovar, S. Trans). The Management and Planning Organization. [In Persian]
24. The Islamic Consultative Assembly Research Center. (2009). On resources and uses of targeted subsidies – expert reports, The Parliament Research Center, Department of Economic Studies – General Section, Retrieved on 4/2/2020 from: https://rc.majlis.ir/fa/report/show/1016955. [In Persian]
25. The Library of the Islamic Consultative Assembly Research Center Museum and Document Center. (2008). Meeting No. 55 of the Eighth Parliament, [In Persian] Retrieved on 19/2/2020 from: https://www.ical.ir//UploadedData/284/Contents/636775351238894041.pdf
26. Toulabinezhad, M. (2013). Analyzing the effects of targeted subsidies on empowerment and welfare of rural households: A case study of Jaydar village (Pol-e-Dokhtar County). A. Thesis, Zanjan University, Zanjan, Iran. [In Persian]
27. UNDP. (2019). Human development report, published for the United Nations development programme. Published for the United Nations Development Programme. Oxford University Press, New York. https://www.undp.org/content/undp/en/home/sustainable-development-goals/goal-12-responsible-consumption-and-production/targets.html
28. Tinguiri, K. L. (1991). Structural Adjustment, Growth and Human Welfare: The Case of Niger, 1982-1989(No. 14). UNICEF International Child Development Centre.
29. Ziaei, M. (2002). The System of subsidies distribution and urbanization development in Iran. Journal of Geographical Research, (42), 190-207. [In Persian] https://journals.ut.ac.ir/article_10786.html