An Examination of the Impact of Economic Variables on Social Challenges in Iran

Document Type : Original Article

Authors
Mohammad MirbagheriJam 1
Mahmoud Rahimi 2
Hamideh Moharrami 3
Bahareh Javadi 4
1 Assistant Professor, Department of Economics, Faculty of Industrial Engineering and Management, Shahrood University of Technology, Shahrood, Iran
2 Assistant Professor, Department of Economics, Faculty of Industrial Engineering and Management, Shahrood University of Technology, Shahrood, Iran.
3 PhD Student in Economic Development, University of Mazandaran, Babolsar, Iran.
4 M.Sc., Economic Systems Planning, Shahrood University of Technology, Shahrood, Iran.
10.22034/jmek.2024.419164.1100
Abstract
This study evaluates and compares social problems across Iranian provinces and examines the effects of macroeconomic variables on these problems from 2006 to 2019. Given the multidimensional nature of social dilemmas, an artificial composite index of social problems, encompassing murder, conflict, addiction, theft, accidents, and divorce, was utilized for inter-provincial comparisons. For this purpose, the P2-Distance approach was implemented using R software. In 2019, South Khorasan, Ilam, and North Khorasan ranked at the bottom of the social problems index, indicating the most favorable conditions, whereas Tehran, West Azerbaijan, and Khorasan Razavi ranked at the top, reflecting the most severe issues. Comparing the changes in the index over the study period reveals that Markazi Province experienced the largest increase in social problems, while Semnan Province recorded the most significant decrease. Furthermore, a two-factor analysis of variance of the estimated index demonstrates that both provincial fixed effects and calendar year effects are statistically significant. Finally, estimating a panel data regression model to assess the impact of macroeconomic variables indicates that variables such as provincial per capita value-added, interest rates, unemployment rates, population, Gini coefficient, and coin prices do not have a significant effect. However, exchange rates and the provincial consumer price index exert a significant impact on the level of social problems.
Keywords
Artificial Index of Social Problems
Composite Index Construction
Macroeconomic Variables
Panel Data
P2-Distance Approach
Subjects
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  • Receive Date 30 March 2024
  • Revise Date 18 May 2024
  • Accept Date 14 August 2024