An Investigation on Effective Factors on Share of Agricultural Sector in GDP of Iranian Economy
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 7, Issue 12
Abstract
This research analyzes how production main factors and relative prices affect agricultural sector share in gross domestic production. Subordinate features of gross domestic production, based on Dixit and Norman’s theatrical models were used utilizing time series data during 1340-1390 for determining effective factors on agricultural sector share in GDP. VECM method was used for assessing equations and examining long-term relation between variables. Main results of research imply the presence of positive effect of price of agricultural products on agricultural sector share in GDP in long time. The results show the importance of relative prices, because, increase in the prices of agricultural products leads to improvement of exchange relation in the favor of agriculture and causes farmers’ income families. The government should enforce the policies of farmer support against decrease of their income. Additionally, of other results of the research, inverse relation between stocks in each work force unites and agriculture share in GDP can be mentioned, because, technological change affects agricultural sector. This result is consistent with theorem. Because dominant technology in agricultural sector of Iran has been effective to someextent. This may be due to low power, stock capital variable effect on agricultural sector share.
Authors and Affiliations
Saeed khodabakhshzadeh *| M.Sc. in Economics Sciences, Health Information Management Research Center, Hormozgan University Of Medical Sciences, Bandar Abbas, Iran, Morteza Aspira| MSc in Agricultural Economics, University of Sistan and Baluchestan
Keywords
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