THE IMPACT OF MECHANIZATION ON THE VALUE-ADDED OF AGRICULTURE SECTOR (A CASE STUDY OF IRAN)

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ELAHI NASSER; HEMMATYAR MARYAM

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Journal: QUANTITATIVE RESEARCHES IN MANAGEMENT Year:2013 | Volume:3 | Issue:4 Page(s): 133-159

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Title

THE IMPACT OF MECHANIZATION ON THE VALUE-ADDED OF AGRICULTURE SECTOR (A CASE STUDY OF IRAN)

Author(s)

ELAHI NASSER | HEMMATYAR MARYAM | Issue Writer Certificate

Keywords

VALUE-ADDEDQ3

COEFFICIENT OF MECHANIZATIONQ2

TRANSLOG COST FUNCTIONQ2

ITERATED SEEMINGLY UNRELATED REGRESSIONQ2

CONSTANT RETURN TO SCALEQ2

Abstract

Mechanization of agriculture has always been influenced by and influencing the economy so that in many cases, the less attention to it causes disinvestment in this sector. Considering the effectiveness of non-mechanized production factors such as labor, fertilizer, seeds, pesticides, water and land, we examine in this study the impact of agricultural machinery on the value added of the agriculture sector. A TRANSLOG COST FUNCTION along with the cost share equations of inputs is used to evaluate the impact of various factors including “Human Development Index (HDI) and “the COEFFICIENT OF MECHANIZATION”. ITERATED SEEMINGLY UNRELATED REGRESSIONs (ISUR) procedure is used for the estimation purpose. Annual Survey of 28 provinces of Iran during a twenty-year time period (from 1989-90 to 1998-99) has been used for the study. The findings reveal that mechanization tends to increase the value added. Nevertheless, despite the excessive cost for agricultural mechanization, the COEFFICIENT OF MECHANIZATION is very low in the country and has no significant relationship with costs in preparing, maintaining and using agricultural machinery in the farm productions (except Forage plants). Also hypotheses of homogeneous production function, Hicksian neutrality of technical change, homotheticity and constant returns to scale were rejected by the tests. Accordingly, technical change bias creates an upward bias in labor force and a downward bias in agricultural machinery.

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APA: Copy

ELAHI, NASSER, & HEMMATYAR, MARYAM. (2013). THE IMPACT OF MECHANIZATION ON THE VALUE-ADDED OF AGRICULTURE SECTOR (A CASE STUDY OF IRAN). QUANTITATIVE RESEARCHES IN MANAGEMENT, 3(4), 133-159. SID. https://sid.ir/paper/191939/en

Vancouver: Copy

ELAHI NASSER, HEMMATYAR MARYAM. THE IMPACT OF MECHANIZATION ON THE VALUE-ADDED OF AGRICULTURE SECTOR (A CASE STUDY OF IRAN). QUANTITATIVE RESEARCHES IN MANAGEMENT[Internet]. 2013;3(4):133-159. Available from: https://sid.ir/paper/191939/en

IEEE: Copy

NASSER ELAHI, and MARYAM HEMMATYAR, “THE IMPACT OF MECHANIZATION ON THE VALUE-ADDED OF AGRICULTURE SECTOR (A CASE STUDY OF IRAN),” QUANTITATIVE RESEARCHES IN MANAGEMENT, vol. 3, no. 4, pp. 133–159, 2013, [Online]. Available: https://sid.ir/paper/191939/en

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