Estimation of Multidimensional Inequality of Bushehr Province Compared to the Whole Country

Document Type : Article-Based Dissertations

Authors

1 PhD Student in Economics-Econometrics, Department of Economics, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan-Iran

2 Professor of Econometrics and Social Statistics,Department of Economics, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan-Iran.

3 Department of Economics, Faculty of Economics, Management and Administrative Sciences, Semnan University, Semnan – Iran

Abstract
EXTENDED ABSTRACT
INTRODUCTION
Inequality often exists among groups of people, nations or regions. The measure of inequality is based on household income (expend- iture). Many economists have argued that income is a partial measure of well-being (Cowell and Guga, 1981, Sharks, 1980).
Individuals or households have different characteristics and needs. The total income or expenditure of households are spent on a basket of consumer goods. The composition of these baskets varies according to the characteristics of the households. Therefore, welfare indicators should be combined with other welfare characteristics.
Bushehr province is one of the southern provinces of Iran with an area of over 27,600 square kilometers, which is the nineteenth largest province in terms of area in the country. It is bordered by Khuzestan Kohgiluyeh and Boyer-Ahmad provinces to the north, Fars province to the east, the Persian Gulf to the south and west, and Hormozgan province to the southeast. (Statistical Center of Iran, 2020) Bushehr province is considered as the third largest economy in Iran due to its diversity and size in industries such as oil and gas, petrochemicals, power plants, agriculture, fisheries, mining, nuclear facilities, maritime industries and commercial activities as well as its geographical location in the Persian Gulf. The statistics presented by Iran Statistical Center of Iran for the years 2016-2021 show that despite Bushehr province's potential and actual environmental and economic capabilities and its position in the country's economy, it does not have a desirable situation compared to the provincial average in terms of social justice indicators.The main aim in this research is to. analyse the economic  Busher Province during 1984-2021.
 
METHODOLOGY
We estimate the economic inequality based on the combination of household consumption basket components in Bushehr province as well as country a whol.These give us the opportunity to compare trends of  inequlites concerning urban, rural and the Bushehr province with that is the country The multidimensional Gini cofficient used for estimating inequality is the Assis kumar Banerjee(2010) index, which has advantages over other multidimensional inequality indices in the literature, leading to better estimation of inequality compared to other existing indices in this field. Unlike Tsui (1995,1999), Maasoumi (1986), and Bourguignon (1999) inequality indices, individuals achievements in welfare dimensions are
included in non-negative values. Additionally, the weight of welfare dimensions is estimated intrinsically. To compare the level of inequality between Bushehr province and the whole country by urban and rural areas, factor analysis of variance models with regression have been used.
 
CONCLUSION
According to the results of the estimated multidimensional Gini cofficient, the inequality in the whole country and Bushehr province was higher in urban areas than in rural areas. In addition, the results of the estimation of single-factor of variance analysis, indicate that inequality in Bushehr province is on average about 0.04 more than the whole country. In general, according to the results of this study, it is suggested that the officials and policy makers of the province, when formulating plans to reduce inequality and move towards sustainable development, should pay attention to all dimensions of well-being in the household consumption basket, especially the dimensions that have more weight and importance concerning the household welfare.

Keywords

Subjects
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  • Receive Date 01 June 2023
  • Revise Date 19 September 2023
  • Accept Date 16 December 2023
  • First Publish Date 16 December 2023
  • Publish Date 20 February 2026