Document Type : ORIGINAL ARTICLE

Authors

• behrouz sadeghi Amroabadi ¹
• vahid Kafili khajeh ²

¹ Assistant Professor of Economics, Shahid Chamran University of Ahvaz, Ahvaz, Iran

² Department of Economics, Faculty of Economics and Administrative sciences, Arak University, Arak, Iran

Abstract

In economic literature, the subject of development has been of great importance for a long time. As the smallest social unit, the household is affected by the development indicators, and in turn, its mutations affect the development situation in any society. The purpose of this study is to investigate the causality between the household dimension and economic development. For this purpose, the data of the last three censuses and statistical yearbooks were used to extract the size of the household and construct the development index for each province based on the TOPSIS method. Also, in order to investigate the causality, we used the panel causality test, presented by Emirmahmutoglu and Kose (2011) based on the vector autoregression (VAR) model and the Wald tests with bootstrap critical values specific to each sector. The causality results do not confirm the existence of causality from the household dimension to economic development, but the causality from economic development to the household dimension cannot be rejected. Also, the regression results based on panel data indicate a positive and significant relationship between the development variable and the household dimension.

Keywords

• Economic development
• household size
• Granger causality
• bootstrap panel