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Information Journal Paper

Title

EVALUATING WELFARE IMPACTS OF REDUCING CHEMICAL FERTILIZER SUBSIDY IN WHEAT AND RICE MARKETS

Pages

  1-24

Abstract

 Undesired consequences of subsidizing the inputs resulted in emphasis on elimination of the input subsidies in order to get the rapid economic growth in developing countries. CHEMICAL FERTILIZERs are of the important inputs receiving SUBSIDY in Iranian agriculture sector. Regarding the extent of the CHEMICAL FERTILIZER SUBSIDY, elimination of the SUBSIDY may lead to cinsiderable WELFARE IMPACTS. Therefore, this study conducted while it aims at exmination of the welfare consequences resulted from reduction or elimination of CHEMICAL FERTILIZER SUBSIDY in production of strategic crops of WHEAT and RICE. The study period covers 1974-2006. The intrest groups of our analysis are production factor suppliers, production factors consumers or producers of the selected crops as well as government. To get the objective a simulation system was established, containg the crops and production factor markets and then the impact of the SUBSIDY reduction was traced wihin the framework of the model. This system comprise the demand and supply of the production factors and production of the selected crops.The findings showed that labor and capital are used in production of WHEAT and RICE as substitutes. Impact of the capital price on capital demand as well as the impact of the crops price on the capital and labor demand were found insignificant. The findings of the production function also revealed that labor has no significant effect on the WHEAT and RICE production while capital affects their production significantly. The results also showed that producers of the crops experience a reduction in their welfare as the CHEMICAL FERTILIZER subsdiy reduces while the production factors suppliers benefit from that. However, the interest groups as a whole benefit from reduction and elimination of chemical fertilzer SUBSIDY, amounting to 3927.6 and 404.4 billion Rials for WHEAT and RICE under SUBSIDY elimination scenario, respectively.

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    Cite

    APA: Copy

    NAJAFI, B., & FARAJZADEH, Z.. (2011). EVALUATING WELFARE IMPACTS OF REDUCING CHEMICAL FERTILIZER SUBSIDY IN WHEAT AND RICE MARKETS. EQTESAD-E KESHAVARZI VA TOWSE'E, 18(4 (72)), 1-24. SID. https://sid.ir/paper/24612/en

    Vancouver: Copy

    NAJAFI B., FARAJZADEH Z.. EVALUATING WELFARE IMPACTS OF REDUCING CHEMICAL FERTILIZER SUBSIDY IN WHEAT AND RICE MARKETS. EQTESAD-E KESHAVARZI VA TOWSE'E[Internet]. 2011;18(4 (72)):1-24. Available from: https://sid.ir/paper/24612/en

    IEEE: Copy

    B. NAJAFI, and Z. FARAJZADEH, “EVALUATING WELFARE IMPACTS OF REDUCING CHEMICAL FERTILIZER SUBSIDY IN WHEAT AND RICE MARKETS,” EQTESAD-E KESHAVARZI VA TOWSE'E, vol. 18, no. 4 (72), pp. 1–24, 2011, [Online]. Available: https://sid.ir/paper/24612/en

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