International Journal of New Political Economy

International Journal of New Political Economy

The Effect of Family Stability Indicators on Economic Performance in Industrialized Countries: Lessons for the Iranian Economy

Document Type : Original Article

Authors
1 Department of Economics, SHI.C., Islamic Azad University, Shiraz, Iran.
2 Department of Economics, SHI.C., Islamic Azad University, Shiraz, Iran
Abstract
Understanding the determinants of long-run economic performance has progressively extended beyond conventional capital-centered frameworks toward more comprehensive approaches that acknowledge the significance of social institutions, demographic dynamics, and human capital. The G7 economies constitute a particularly pertinent context for this investigation, given the substantial demographic, institutional, and macroeconomic transformations they have undergone over the past three decades. This study investigates the long-run association between per capita income and five principal demographic, social, and macroeconomic determinants, namely mental disease burden (captured through a composite Mental Disease Index), divorce, fertility, female labor force participation, and inflation, across the G7 economies from 1991 to 2023. Employing the panel Dynamic Ordinary Least Squares (DOLS) estimator within an econometric framework that addresses cross-sectional dependence, unit roots, and cointegration, the empirical analysis yields evidence of stable long-run cointegrating relationships among the variables. The findings indicate that the mental disease index (-0.206), divorce (-0.312), and inflation (-0.022) exert negative and statistically significant effects on per capita income, whereas fertility (0.411) and female labor force participation (0.124) are positively associated with long-run income levels. The study advances the existing literature in two principal ways: first, by constructing a composite indicator of mental health burden, and second, by offering comparative insights into the manner in which institutional quality conditions the fertility-growth nexus. Although the empirical analysis concentrates on the G7, the findings yield potentially relevant policy lessons for developing economies such as Iran, where mental disease prevalence is elevated, family structures are undergoing rapid transformation, and inflationary pressures persist. Overall, the results suggest that sustainable economic performance is more likely to emerge when health, demographic, family, labor market, and macroeconomic policies are designed as mutually reinforcing institutional frameworks rather than as isolated interventions.
Keywords

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Articles in Press, Accepted Manuscript
Available Online from 02 November 2026

  • Receive Date 23 July 2026
  • Revise Date 27 October 2026
  • Accept Date 02 November 2026
  • First Publish Date 02 November 2026
  • Publish Date 02 November 2026