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Paper Information

Journal:   EQTESAD-E KESHAVARZI VA TOWSE'E   Winter 2002 , Volume 9 , Number 4 (36); Page(s) 7 To 22.
 
Paper: 

EFFECTS OF PRICE SUPPORT POLICIES ON CROPS PRODUCTION GROWTH IN IRAN AN ANALYSIS USING MULTIPLICATIVE DECOMPOSITION METHOD

 
 
Author(s):  SALAMI H.A., ESHRAGHI F.
 
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Abstract: 

Pricing of agricultural products has always been a common tool used by policy makers and planners in agriculture sector. The present study attempts to evaluate the performance of this policy in Iran, focusing on its effects on the growth of agricultural products during 1977-1997. The multiplicative decomposition method was employed, using time series data on all products, area under cultivation, yields (productivity), cropping pattern, and crop prices at both national and provincial levels.
The results indicated that the total value of crops increased by 231%, annually 11.55%, in the above period, about 75% of it being attributed to the increased prices, the rest to improved yields, increased cultivated area and the changes in cropping patterns. Of the latter three which accounted for 25% of the increase in crops value, the contribution of improved yields was 13% that of increase cultivated area being 6%.
The results attested to the argument that crop price policies failed to provide adequate incentives for producers to improve productivity of the existing farmlands, e.g. through higher investment. They rather meant to cushion adverse effects of increased input prices in this sector.

 
Keyword(s): PRICE POLICY, MULTIPLICATIVE DECOMPOSITION METHOD, OUTPUT GROWTH, PRODUCTIVITY
 
References: 
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