A Survey on the Situation of Income Distribution and it’s Diversity and Impact on the Economy of Rural Households (Case Study: Alamout Region)

Document Type : Research Paper

Authors

1 Agricultural Economics, University of Zabul

2 Agricultural Economics, University of PNU Tehran

3 Associate Professor and Committee Chairman of the Socio-economic and Promotions

Abstract

Distribution and diversity of income in rural regions according to the characteristics of households and in the framework of sustainable livelihood must be investigated. In this study, in order to investigate the Status of income distribution and diversity and its impact on the economy of rural households in Alamout region Multinomial Logit Model has been used. The required dates are related to period of 2012-2013. Using the regulatory questionnaires. The required data have been collected from 127 samples household. The result shows that share of income from livestock-agricultural activities are the most important factor income inequality in Alamout region. In terms of influencing effective variables, observes the significant difference in levels one and five percent between different parts of income (agricultural, livestock, secondary and combined). Also, the result shows that coefficients of explanatory variables in Multiple Logit Model not equal with zero with the probability more than of 95 percent simultaneously that this issue shows the appropriateness of functional form in all estimates. Also, the Multinomial Logit Model significanted in high level of likelihood ratio test statistics and maximum probability values (0/079) obtained for the agricultural income sector. At the end, in order to creating income diversity for rural households and transferring income from the agriculture sector to other sectors, recommendes sufficient investment in education, coordinating redistribution activities of executive agencies and creating the small manufacturing firms in Alamout region.
JEL Classification: C35, D33, O18, R12.

Keywords

References

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History

  • Receive Date: 17 May 2014
  • Revise Date: 26 October 2014
  • Accept Date: 10 March 2015

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