An Analysis of the Effects of the Subsidies Targeting on Rural Communities (Case Study: Binalood County)

Document Type : علمی


1 Ferdowsi University of Mashhad

2 Islamic Azad University, Shirvan branch


Objective: currently a very large number of poor people live in rural areas. In 2010, the targeted subsidy plan (also known as the subsidy reform) was conducted, aimed at equitable distribution of oil revenues among households, in order to achieve the social justice. The present study intended to investigate the effects of the first phase of reform implementation on rural households.
Method: A descriptive- analytical method was applied based on research topic and objectives. The required data were collected using field and documentary research methods, rural households were defined as unit of analysis and the questionnaire designed that included issues that investigated the impact of cash subsidy on rural households in term of 29 variables. Data analysis in this study was done by using SPSS software program and factor analysis method.
Findings: According to the results, nine parameters were identified, among 29 primary variables, which interpret 72.67% of the total variance of the effects of targeted subsidy reform on rural households. Of the nine identified factors, the first and the most important was "economic impacts" with about 50% of total variance.
Practical solutions: The government objectives in the field of welfare, security and social justice will bolster, if the subsidy reach to the target groups (poor and vulnerable people), thus the government's orientation towards a gradual increase in the share of lower income deciles is highly recommended.
Authenticity: At present, targeted subsidies law and its implementation is one of the most challenging issues in Iranian economy that has many impacts on geographically diverse areas of the country. This paper is relevant to the issue which has been little studied previously.