The effect of economic fragility on the misery index

Document Type : RESEARCH PAPER

Authors

1 Professor of Economics, Department of Economics, Faculty of Economics and Social Science, Alzahra University, Tehran, Iran

2 Postdoctoral, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

Abstract

The misery index, which is the sum of the inflation rate and the unemployment rate, is one of the key indicators for measuring economic pressures on households and assessing the effectiveness of countries' economic policies. In recent years, many developing countries have faced the phenomenon of economic fragility; a situation that can lead to increased livelihood vulnerability and social dissatisfaction. The present study aimed to analyze the impact of economic fragility dimensions on the misery index in selected countries with a fragility alert status during the period 2007-2022. Using panel data and the generalized moments method (GMM), this study examined the effects of the variables of economic recession and poverty, unbalanced development, migration and brain drain, and population pressure on the misery index. The results showed that all components of economic fragility have a positive and significant effect on the misery index, and population pressure also plays a reinforcing role in increasing this index. The findings indicate that economic fragility weakens the level of economic well-being and exacerbates the misery index through increased inflation and unemployment. Therefore, reducing the dimensions of fragility by strengthening sustainable, balanced growth and preventing elite migration, along with population management, is an inevitable necessity to improve the misery index and improve the quality of life of households

Keywords

Main Subjects

References

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