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Industrial development and social welfare: A case study of Iran

Mehdi Basakha and Seyed Hossein Mohaqeqi Kamal

Socio-Economic Planning Sciences, 2019, vol. 68, issue C

Abstract: Nowadays, monitoring and evaluation of social welfare are of profound import in many countries. This study sought to shed some light on the impact of industrial development on the Iranian social welfare. The Iranian Social Welfare Composite Index (SWCI) and Sen Welfare index (SEN) considered as proxies of Iranian social welfare. To gauge the impact of industrialization on social welfare, Autoregressive Distributed Lags (ARDL) bound testing was utilized. The econometric models estimated using annual data from 1967 to 2015 and presented in terms of long-run and short-run dynamic relationships. The results indicate that industrial development had a significant impact on the Iranian social welfare and this impact has been stronger in the long run. In addition, oil revenues, inflation, unemployment and the Iraq-Iran War have had a significant impact on the Iranian social welfare during the period under review. Despite the contradictory impact of industrialization on the various dimensions of welfare, the results show that the industrial development has had a positive impact on the social welfare in Iran. So, the government can boost the effects of industrialization on social welfare by controlling its negative effects.

Keywords: Social welfare; Industrial development; Iran; Auto regressive distributed lags (ARDL) (search for similar items in EconPapers)
JEL-codes: O14 D60 I31 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.seps.2018.10.012

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