Purpose: Multidimensional poverty reflects the deprivation of individuals in society in terms of basic human capabilities and presents a different model of income poverty. Poverty is one of the fundamental problems in developing societies and is a clear indication of economic, social, and cultural underdevelopment, which jeopardizes political stability, social solidarity, and mental health within society. Therefore, the aim of this research is to examine the impact of institutional variables on multidimensional poverty in selected developing countries.
Method: This study seeks to evaluate the effect of institutional variables on multidimensional poverty in a selection of developing countries over the period from 2012 to 2022, using the generalized method of moments.
Findings: Based on the research methodology and in line with the theoretical foundations, the results show that corruption control, public health, and social welfare have a negative impact on multidimensional poverty in developing countries. Additionally, the first lag of multidimensional poverty has a positive effect on multidimensional poverty.
Conclusion: The findings of the study and the results of the model estimation indicate that each of the variables in this research has a different effect on multidimensional poverty in developing societies. Some of these variables reduce multidimensional poverty, while others exacerbate it. Considering the impact of social welfare, corruption control, and public health on reducing multidimensional poverty, it is essential to implement necessary institutional reforms to improve the quality of social welfare, enhance transparency, strengthen political stability, control corruption, and improve the quality of health and public health in various sectors.