Impact of socio-economic infrastructure investments on income inequality in Iran |
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| Institution: | 1. Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran;2. Faculty of Economics, University of Tehran, Tehran, Iran;3. Faculty of Administrative Sciences & Economics University of Isfahan, Isfahan, Iran;1. University of Roma Tre, Department of Economics, Rome, Italy;2. Sapienza University of Rome, Department of Economics and Law, Via del Castro Laurenziano 9, 00161, Rome, Italy;1. National Research University Higher School of Economics, 20 Myasnitskaya St., 101000, Moscow, Russia;2. Adamas University, Kolkata, India;1. University of Texas Rio Grande Valley, Department of Economics and Finance, 1201 West University Drive, Edinburg, TX 78539, United States;2. Kennesaw State University, Department of Economics, Finance, and Quantitative Analysis, 560 Parliament Garden Way, Kennesaw, GA 30144, United States |
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| Abstract: | One of the main subjects, governments have been facing is fair distribution of income, and making effort to improve it. In this study, we evaluated the effects of economic (energy, water, ICT) and social (health, education) infrastructure expenses on income inequality in the Iranian provinces for the period of 2007–2016 by the panel corrected standard errors (PCSE) model. The results show that social and economic infrastructures improvements reduce income inequality. However, the magnitude of these effects varies. Investment on education, healthcare, communication technology, energy, and water infrastructures has the greatest impact on income inequality reduction, respectively. Therefore, in order to reduce inequality in deprived areas, combination and optimal allocation of economic and social infrastructures should be considered. |
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| Keywords: | Economic and social infrastructure Income inequality Panel corrected standard errors |
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