Abstract:
Given the importance of appropriate income distribution in the country's rural sector, this study examined the relationship between resource allocation among the main sectors of the economy (agriculture, industry, and services) and rural income distribution in Iran, categorized by deprived, prosperous, and semi-prosperous provinces during the period (2007-2014) using panel data. The results obtained from estimating the model for semi-prosperous regions showed that transferring the share of service value-added to the agriculture and industry sectors, as well as transferring the share of industrial value-added to the agriculture sector, leads to a reduction in rural income inequality; conversely, transferring the share of agricultural and industrial value-added to the services sector leads to an increase in rural income inequality. This is while the model results in deprived and prosperous regions indicated that changes in the share of value-added of the provinces' economic sectors do not have a significant impact on rural income inequality in those regions. Examining the results indicated that increasing the share of the agricultural sector in semi-prosperous regions leads to a reduction in rural inequality. Furthermore, emphasizing the increase in the share of the agricultural sector in deprived regions only leads to a reduction in rural income inequality if the access of these regions to facilities increases; finally, the results indicated that in prosperous regions, emphasizing an increase in the share of the agricultural sector does not lead to a reduction in rural income inequality.
Machine summary:
Received: 2017/12/23 Final Acceptance: 2018/07/22 Abstract Given the importance of appropriate income distribution in the country's rural sector, this study investigated the relationship between resource allocation among the main sectors of the economy (agriculture, industry, and services) and rural income distribution in Iran, categorized by deprived, prosperous, and semi-prosperous provinces during the period (2007-2014) using panel data.
In this regard, some researchers, including Calderon and Chong (2004) and Valerio Mendoza (2017), show that in order to achieve economic growth accompanied by fair income distribution, deprived areas must benefit from infrastructural facilities.
Given the above stages, this study examines the relationship between resource allocation among different sectors of the economy and rural income distribution in Iran, categorized by deprived and prosperous provinces in terms of facilities.
Org Abunouri and Farahati (1395) leads to the improvement of income distribution in the entire society, but based on the results of the present study, emphasizing the development of the agricultural sector in prosperous regions is not effective on rural inequality, which encompasses the majority of low-income groups in society; therefore, it is necessary to analyze and review the rules and institutions that affect rural and total societal income distribution in these regions.
Based on the above results, in order to reduce rural inequality in deprived regions, it is necessary to consider increasing the share of the agricultural sector in production, simultaneously with increasing the availability of infrastructural facilities in said regions, so that by placing deprived regions at the level of semi-prosperous regions, the growth of these regions and the improvement of rural income distribution are achieved simultaneously.
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