Rural Income Distribution and Its Effects on Rural-Urban Migration in Iran

Document Type : Research Paper

Authors

• seyed mohammadreza mahdavian ¹
• Marziyeh esfandiari ²

¹ Ph.D. Candidate, Department of Agricultural Economics, Faculty of Agriculture, University of Zabol, Zabol, Iran.

² Associate Professor, Department of Economics, Faculty of Management and Economics, University of Sistan and Baluchestan, Zahedan, Iran.

10.30495/jae.2023.28532.2271

Abstract

Introduction: The present study, by examining the rural-urban migration theories, using the Generalized Method of Moments approach and using provincial data from 2006-2016, investigated the effects of rural income distribution on immigration. The variables used in this study include the Gini coefficient, literacy rate, number of health homes, per capita GDP, agricultural sector's value-added, and Dummy variable (for the payment of subsidies).
Material and Methods: The Generalized Method of the Moment Approach was used for this purpose. To verify the Cross-Sectional Dependence and Pesaran (2004) CD Test and CADF test were used. Also, to investigate co-integration, the Westerlund test was used.
Finding: The research findings show that the relation between the Gini coefficient and migration is positive, so with a percentage increase in the Gini coefficient, migration from the village to the city will increase by 0.46%. Also, per capita GDP, education, and health in rural areas have decreased immigration. As a percentage increase in per capita GDP, literacy rates, and the number of health homes, we will see a decrease of 0.13%, 0.002%, and 0.05% in immigration, respectively. The relationship between the value added of the agricultural sector and migration is positive, and for a one percent increase in the value added of the agricultural sector, the rural-urban migration rate will increase by 0.19 percent.
Conclusion: In order to improve the distribution of income in rural areas, establishing an appropriate structure for coordinating rural and nomadic development, promoting rural development indicators and providing new services, prioritizing rural services based on regional and local conditions, supporting the expansion of industrial agriculture and rural industries in order to create reverse migration (from city to village), they must be prioritized.

Keywords

• Migration theories
• Income inequality
• GMM method

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