Assessing the Impact of Government Smart Financial Management Policies on Sustainable Agricultural Development and Rural Welfare: A Resource Management and Decision Engineering Approach (Case Study: Lorestan Province)

Nooshin Osooli; Kazem  Taleshi

Authors

Nooshin Osooli Department of Agriculture, Khor.C., Islamic Azad University, Khorramabad, Iran. Author https://orcid.org/0000-0002-6637-0966
Kazem Taleshi Department of Agriculture, Khor.C., Islamic Azad University, Khorramabad, Iran. Author https://orcid.org/0000-0003-4445-8059

Keywords:

Smart Financial Management, Sustainable Agricultural Development, Rural Welfare, Resource Management, Decision Engineering, Lorestan Province

Abstract

This study aimed to evaluate the impact of government smart financial management policies on sustainable agricultural development and rural welfare in Lorestan Province, with emphasis on the mediating roles of resource management and decision-making quality. This applied, quantitative, cross-sectional study was conducted among 384 rural agricultural household members in Lorestan Province selected through multistage stratified sampling. Data were collected using a researcher-developed questionnaire measuring government smart financial management policies, resource management, decision-making quality, sustainable agricultural development, and rural welfare. Content and face validity were assessed by experts, and construct validity was evaluated through confirmatory factor analysis. Reliability was examined using Cronbach’s alpha and composite reliability. Data were analyzed using Pearson correlation coefficients and structural equation modeling. Model adequacy was assessed through χ²/df, RMSEA, SRMR, CFI, TLI, IFI, GFI, and AGFI indices, and indirect effects were tested using bootstrap confidence intervals. Government smart financial management significantly predicted resource management (β = .61, p < .001), decision-making quality (β = .56, p < .001), sustainable agricultural development (β = .24, p < .001), and rural welfare (β = .18, p < .001). Resource management significantly predicted sustainable agricultural development (β = .39, p < .001) and rural welfare (β = .21, p < .001), while decision-making quality significantly predicted sustainable agricultural development (β = .28, p < .001) and rural welfare (β = .19, p < .001). Sustainable agricultural development had a strong positive effect on rural welfare (β = .42, p < .001). Significant indirect effects also confirmed the mediating roles of resource management, decision-making quality, and sustainable agricultural development. The model explained 63.8% of the variance in sustainable agricultural development and 57.6% of the variance in rural welfare. Smart government financial management can improve sustainable agricultural development and rural welfare by enhancing the efficiency of resource allocation, strengthening evidence-based decision-making, and promoting more resilient and sustainable agricultural systems.

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