Journal of Agricultural Economics and Development
Year:2004 | Volume:12 | Issue:2 (46)|Papers Count:8

Agricultural protection has been Pursuant and contentious for many years. Agricultural sector has received more government attention compare to other sectors of economy, for many reasons such as agricultural substantive, highest risk production, food and nutrition security. To achieve the highest sustainable economic growth and employment and so on, farmers and agricultural sector are protected. In 2003 producers support across the GECD countries, as measured by the percentage PSE, accounted for 32% of farm receipts, a slight increase from 2002, but down from 37% in 1986-88. The PSE in 2003 is estimated at US$257 billion, or € 229 billion. The share of the most production and trade distorting forms of support - output and input linked support - has declined from over 90% of producer support in 1986-88to about 75% in 2001-03. There has also been a slight narrowing of the spread of support levels between commodities. The still large share of output and input-linked support encourages domestic production, distorts trade and contributes to depressing world prices of agricultural commodities. It is mentioned that policies targeted to specific objectives and beneficiaries. Agricultural policies in GECD countries sometimes Impose unnecessary costs on domestic consumers and taxpayers, and many support policies put pressure on the environment and penalize competitive suppliers, including those in developing countries. In this paper, we are intended to compare and evaluate changes both in GECD agricultural policies and support policy in IRAN. We emphasize necessary changes in the composition of support are then considered. In the end, we proposed some policy tools.

In this study, using the criteria NSP, DRC,SCB,RCA,RSCA, the existence or lack of comparative advantage of five main horticultural products including pistachio, date, apple, orange and almond. Also, export supply functions and export income instability indices for each of the selected products were estimated. In this relation, the needed information was gathered from the producer of the main production area as well as from the relevant organization through questionnaire, interview and clustering sample. Results depicted that according to NSP, DRC and SCB, Irans pistachio in contrast to pistachio of the competitor countries i.e. US, China, Turkey and Syria is enjoying high comparative advantage, however, RCA and RSCA during the study period led to the similar conclusion. Based on the mentioned standards, Irans date comparing to the date of UAE and Iraq lacks a comparative advantage, but when comparing to Australia, England and worlds average price she enjoys it. Trend of comparative advantage of Irans date was fluctuating regularly in the last years. Some productions (apple, orange) have comparative advantage for countries that had imported them from Iran, but these products for some concessionaire countries (Spain, Italy and Africa) havent had a comparative advantage. Almond of Iran in E2, E3 exchange rate for Pakistan and in E3 exchange rate for Kuwait havent comparative advantage, but for UAE, Germany and in worlds average price have comparative advantage. RCA and RSCA criteria show descending trend comparative advantage for almond.Main agricultural production regions have been classified according to their comparative advantage. Estimating export supply functions and instability indices of export income indicated that the stability of pistachio income is more than the other agricultural production with the exportation almond.

The main objective of economic development in each country is the optimal allocation of resources to satisfy human being needs and to increase production, employment, social welfare and so on. To reach such objectives, different economic policies are usually applied. Among these policies, monetary and credit policies are of greater importance. Many development economists consider optimal monetary policy as a key factor for a successful economic development plan. The use of banking credit either for new investment for financing the capital in use will result in an increase in production as well as in employment. Empirical evidence indicates that employment in the agricultural sector has declined over time due to the use of more capital and/or new capital-intensive technologies while there is a rise in employment of the industrial and service sectors. By considering the aforementioned facts and the lack of optimal allocation of resources in Irans agricultural sector, this paper tries to argue that there may be possibilities for an increase in job opportunities in the said sector. Using the time series 1970-2000 data and applying suitable econometric models, it was found that banking credit has a positive effect on employment in the short run while in the long run it has a positive effect on investment. Thus the paper concludes that at least in the short run, there is a possibility for an increase in the employment of the agricultural sector by applying a suitable banking credit system.

According to inter-industry linkages, we may conclude that: for having a leap in Irans economy, sectors of glass and glassware, cement, mine, other mineral & non-ferrous products, basic steel and iron mill products, paper & wood industries, chemical & plastic industries, cupper & cupper products, water and electricity in turn should be activated more. When compared to the others, the sectors of foodstuff industries, aluminum and other basic products of non-ferrous metals, cupper and cupper products, steel and iron mill products are able to increase the demand for intermediate products of other sectors more. Basic steel and steel mill products, cupper and cupper products, aluminum and other basic non-ferrous metals products, cement, paper and wood industries, glass and glassware, other mineral nonferrous products, chemical industries and plastic are more integrated than the others relating both forward and backward linkages. Machinery and equipment, basic products of steel and iron mill, chemical industries and plastic are mainly based on import and share of intermediate import to production of aluminum sectors and other basic products of non-ferrous metals, chemical industries and plastic, basic steel and iron mill products, machinery and equipment industries is more than the other sectors. Aluminum and other basic products of non-ferrous metals, foodstuffs industries, basic products of steel and steel mill have higher multiplier effect in increasing economy income, in other words it is possible to consider them as pioneer sectors and economy stimulator engine. Aluminum and other basic products of non-ferrous metals, foodstuff industries, basic products of steel and iron mill have more effect in the growth of other sectors. Sectors of chemical and plastic industries, agriculture, transportation services, warehouse keeping and communications, commercial services provide the highest amount of input for other sectors. According to calculations and based on 1991 Irans input-output table, agriculture sector is a main intermediate products provider for other sectors and its dependence on intermediate products of other sectors is less than the others so that it is classified as self-sufficient sector. This sector as a growth engine in the economy is weaker than the other sectors. and its growth does not make the other sectors. This sector is at medium level in transactions among all 22 sectors growth intensively. By eliminating the effects of intermediate import of agriculture sector, this sector remains as intermediate products provider for other sectors. Agriculture sector, after the financial, banking and insurance services sectors has the most effect on Irans employment. To decrease unemployment, the final demand of this sector should be increased. To create one million new jobs, the final demand of agriculture should be increased by 20000 billion Rials as 16% increase. If the export of agricultural products increases by $2.3 billion, one million new jobs will be created in the economy.

In order to escape from fragile and uni-product export, it is necessary to recognize new export fields containing a comparative advantage. To achieve this goal, agricultural products, especially pistachio, can be considered as a desired field. In this connection this paper has tried to investigate factors affecting pistachio export in Iran. Time series data used in this study cover period 1979-2001 on supply of pistachio export, logarithmic index of exchange rate volatility and wholesale real price of pistachio were obtained from FAO statistical database, Central Bank and Pistachio Research center of Iran. The co-integration analysis approach named with ARDL was used to study. the long and short run relations between supply of pistachio export and its affecting variables. The results indicated that exchange rate volatility does not have a significant effect on supply of pistachio export in short and long run. In long run the coefficient of wholesale price of pistachio was positive and significant. The results of short run model also revealed that about 58 percent of short run deviations of export supply from its long-run equilibrium could be adjusted during one period. In other words, two years would be required for adjustment of a policy impacts completely. This desired rate of adjustment could create a suitable situation for policies encouraging export.

The purpose of this paper is to estimate the impact of wheat price determination on its output in Iran with the help of second degree profit function during the 1997-2001 using the available data and also collecting the necessary information. We have used the apparently unrelated system of equations (SUR).The impact of product and input prices on their demands has been examined. The result shows that price has had a negligible impact on output and demand for input. This indicates that non-price variables has relatively more important role to play, suggesting that agriculture sector requires .quantitative and qualitative changes to make it more price sensitive and realize its important role in efficient allocation of resource and agricultural development.