Determining the role of economic and social factors affecting the poverty index in the Middle East countries: Panel Data Analysis

Document Type : Research Paper

Authors

• Hamidreza Foruzandeh ¹
• Mohammad Mohebi ²
• Yaqub Zeraatkish ²
• Ebrahim Negahdar ³

¹ Department of Economic Sciences, Qeshm Branch, Islamic Azad University, Qeshm, Iran

² Associate professor, department of economic and accounting, faculty of management and economic, hormozgsn university, Bandar abbas, Iran

³ Associate professor, Department of Economics, science and research branch, Islamic Azad University, Tehran, Iran

10.30495/jae.2024.32908.2411

Abstract

The results of the cointegration test also showed that there is a strong long-term relationship between the variables used. The results of the fixed effects model showed that the estimated coefficients of all the studied variables are meaningful at an acceptable level. In more detail, the estimated coefficient of the variables of capital formation, foreign trade, gross domestic product, human capital, bank credits, and the number of terrorist incidents are respectively equivalent to -0.3142, -0.3642, -0.2438, and -0.2416. It was calculated 0.2056-0.2314. The sensitivity of the poverty index to changes in foreign trade is more than other variables. According to the sign of the estimated coefficients, it can be expected that an increase in the studied indicators (except for the number of tourist incidents) will lead to a decrease in the poverty index in the studied countries.

Keywords

• Poverty index
• panel data
• Middle East countries
• fixed effects
• trade

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