Analyzing the Impacts of Investment on the Empowerment and Welfare of Rural Households (Case Study: Malavi Dehestan of Poldokhtar County)

Document Type : علمی

Authors

• Javad Bazrafshan
• Mehrshad Toulabinezhad

University of Sistan & Baluchestan

10.22067/jrrp.v5i3.51340

Abstract

Extended Abstract
1. INTRODUCTION
In the second half of the twentieth century, neoclassic economists majorly paid attention to limited factors such as physical capital intensity and frequency of natural resources called economic factors. However, nowadays, studies done by development economists show that the policies of countries especially investment in human resources, research expenses and development emphasize the role of investment that affects both economic development and efficiency. It also influences proper distribution of income and the decrease of economic inequality in the economy of different countries. One example of this transformation is the move of economy to replace mobility of goods with the mobility of capital. Given the close relationship of economic growth and social welfare, many economists are after the recognition of economic growth resources. Via increasing the quality and work force skills, capital increases the income of work forces and thus the rapid growth of economy. Accordingly, dependence of quantitative and qualitative increase of production factors of sustainable growth and development has been always a concern for all countries. Lack of investment and capital, as two important productive factors, have been a serious obstacle in the way of development in the developing countries. Therefore, it is necessary to take heed of investment in rural areas.
2. THEORETICAL FRAMEWORK
Given the formation and development of economic growth models in the literature on economy, issue of investment and financing has been noticed by researchers and policymakers as one of the key economic topics. Luis economic growth model shows that investment in industrial development causes a demand for agricultural commodities and improves the efficiency of agricultural products. Investment in rural areas leads to improvement of the local economy, establishment of economic and social capital among rural households, stability of agricultural products, reduction of rural-urban migration, increase in income, decrease of rural poverty and rural development, which altogether cause economic development, empowerment and welfare of rural community.
3. METHODOLOGY
The research method is descriptive-analytic. The data collection method is "library" and "field" study. The research population was taken from Malavi Rural District in Poldokhtar. Using Cochran formula, we selected 157 households (in 13 villages) as the sample. For inferential statistical analysis of findings, one-sample t test and Pearson correlation in SPSS software were used. Thus, in order to enhance the accuracy, from the total 13 villages in Malavi Rural District, 13 were selected for sampling, and questionnaires were distributed randomly among them.
4. DISCUSSION
For measuring the impact of investments on empowerment and economic prosperity of rural households in Malavi Rural District, single-sample t-test was used. The analysis of the mean number of these indicators at the level of households in the under-study area showed the great impact of these capitals on all of the indicators. The findings of this study show that investment has the greatest impact on agricultural and livestock sector, which was higher compared to other indicators. Investment in the agricultural sector has increased compared to the past. In the case of investment impact on empowerment and social welfare of rural households, single-sample t test was used, which shows investment impact on the components of empowerment and social welfare. Given the findings, investment had the greatest impact on the promotion of level and quality of life, which is at a higher level, compared the other indices. As a result, investment increased the level and quality of life in the households in this study. Furthermore, in order to analyze the statistical relationship between investment and economic and social indicators of empowerment and welfare of rural households, Pearson correlation coefficient was used. According to the results and given the correlation coefficient 0.765 (sig level= 0.000), there is a a significant correlation and significant relationship between these two variables. The study of this significant relationship shows that increase in investment leads to the increase of capacity and welfare of rural households in this study. This means that by increasing the amount of investment in rural areas, the grounds for empowerment, and social and economic welfare of the rural households will also be established.
5. CONCLUSION
The study of investment impact on indicators of empowerment and economic prosperity in rural areas shows that investment has a significant impact on the components of empowerment and economic welfare. This proves the positive impact of investment on saving status, incomes, purchasing power, poverty reduction, investment in agriculture and livestock, ownership, cultivation, use of inputs and machinery, technology and mechanization rate, and employment and productivity. Investment has the greatest impact on agricultural and livestock sector, which was higher compared to other indicators. With respect to the impact of investment on empowerment and social welfare of rural households, investment had positive impacts on bbenefiting from health facilities and education, raising the level of health, recreation and leisure, participation in village affairs, diversity of diet and nutrition, housing development and satisfaction, promotion life quality and level, access to services, increase of awareness, change of lifestyle and promotion of the urban lifestyle, and survival and migration. The greatest impact was on the promotion life quality and level. In order to analyze the correlation and statistical relation between investment, and empowerment and welfare of rural households, Pearson correlation coefficient was used. The findings of this test show that there is a significant relationship between these two variables. Investigation of this significant relationship shows that the increase of investment leads to the rise of power and welfare among the rural households in this study.

Keywords

• Investment
• Empowerment
• Welfare
• Rural Development
• Poldokhtar County

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