THE POTENTIAL OF REDUCING PRICES OF WHEAT AND MAIZE PRODUCTS BY EXPLOITING ECONOMIES OF SCALE: A CASE STUDY OF FARS PROVINCE

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

SALAMI HABIBOLLAH; SARAEI SHAD ZINAB

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL) Year:2015 | Volume:9 | Issue:1 Page(s): 77-94

Download Full-Text

Persian Verion

View:

653

Download:

Cites:

Information Journal Paper

Title

THE POTENTIAL OF REDUCING PRICES OF WHEAT AND MAIZE PRODUCTS BY EXPLOITING ECONOMIES OF SCALE: A CASE STUDY OF FARS PROVINCE

Author(s)

SALAMI HABIBOLLAH | SARAEI SHAD ZINAB | Issue Writer Certificate

Keywords

PRICEQ2

ECONOMIES OF SCALEQ1

WHEATQ2

CORNQ2

FARS PROVINCEQ2

Abstract

There is a general belief among agricultural expertise and planers that smallness of the farms causes inefficiency, and increases cost of production in production units. In fact, they assume that production technology of agricultural products is characterized by increasing returns to scale which can be exploited to reduce PRICEs. The main object of this study is testing this hypothesis for two major agricultural crops in FARS PROVINCE, namely; WHEAT and maize crops. To this end, a dual approach using the cost function is utilized to specify this structural characteristic in three distinct traditional, commercial, and mixed farms, applying production data of the crop years 1388-87. The Generalized Leontief, Normalized Quadratic and Translog functional forms were examined to specify the most appropriate form for representing the production technology of these two products. Results indicate that the Translog functional form most appropriately represents production technology of the selected crops in the FARS PROVINCE. The calculated scale economies parameter for these two crops in the three different farms revealed the presence of increasing returns to scale in their production technologies. Consequently, there is a good potential for reducing the unit cost of production, and thus, PRICEs of these two crops by increasing the size of the farms above their present average farm size. In addition, the magnitude of the scale economies parameter in the WHEAT crop is larger than that of the maize implying, that WHEAT farms have more potential of exploiting ECONOMIES OF SCALE to reduce the cost of producing this product.

Cites

No record.

References

No record.

Cite

APA: Copy

SALAMI, HABIBOLLAH, & SARAEI SHAD, ZINAB. (2015). THE POTENTIAL OF REDUCING PRICES OF WHEAT AND MAIZE PRODUCTS BY EXPLOITING ECONOMIES OF SCALE: A CASE STUDY OF FARS PROVINCE. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), 9(1 ), 77-94. SID. https://sid.ir/paper/124592/en

Vancouver: Copy

SALAMI HABIBOLLAH, SARAEI SHAD ZINAB. THE POTENTIAL OF REDUCING PRICES OF WHEAT AND MAIZE PRODUCTS BY EXPLOITING ECONOMIES OF SCALE: A CASE STUDY OF FARS PROVINCE. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL)[Internet]. 2015;9(1 ):77-94. Available from: https://sid.ir/paper/124592/en

IEEE: Copy

HABIBOLLAH SALAMI, and ZINAB SARAEI SHAD, “THE POTENTIAL OF REDUCING PRICES OF WHEAT AND MAIZE PRODUCTS BY EXPLOITING ECONOMIES OF SCALE: A CASE STUDY OF FARS PROVINCE,” AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), vol. 9, no. 1 , pp. 77–94, 2015, [Online]. Available: https://sid.ir/paper/124592/en

Related Journal Papers