EFFECT OF GOVERNMENT CREDIT FACILITIES AND FOREIGN EXCHANGE POLICIES ON THE LABOR PRODUCTIVITY OF RURAL INDUSTRIES: A CASE STUDY OF SISTAN AND BALOUCHESTAN PROVINCE

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SADEGHI A.; SEPEHRDOUST H.

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Journal Paper

Paper Information

Journal: JOURNAL OF AGRICULTURAL ECONOMICS AND DEVELOPMENT Year:2001 | Volume:9 | Issue:1 (33) Page(s): 149-160

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Title

EFFECT OF GOVERNMENT CREDIT FACILITIES AND FOREIGN EXCHANGE POLICIES ON THE LABOR PRODUCTIVITY OF RURAL INDUSTRIES: A CASE STUDY OF SISTAN AND BALOUCHESTAN PROVINCE

Author(s)

SADEGHI A. | SEPEHRDOUST H.

Keywords

PRODUCTIVITY

RURAL INDUSTRIES

CREDIT FACILITIES AND FOREIGN EXCHANGE STRATEGIES

LABOR PRODUCTIVITY

Abstract

This study evaluates the effect of economic policies of government on labor productivityof rural industries, in Sistan and Balouchestan province. Sistan and Balouchestandue to its geographical location has an important strategic situation. This province faces with acute problems of poverty, immigration as well as unemployment. To solve these problems adoption of appropriate policies by the government, especially for the protection of industries is needed. This study examines the labor productivity of the province from two levels, namely micro and marco level. At the micro level, by using Cobb-Douglass production function, marginal productivity as well as return to scale have been estimated for each group of industries. Then, at the macro level the impact of government policies including monetary and foreign exchange policies are analyzed using panel data technique. The results of study indicate that there is a diminishing return to scale for the non-metallic and metallic industries and the impact of the banking facilities on the labor productivity of these industries is negative. In other words, due to the diminishing return to scale an increase in banking facilites which is used as working capital for these two group of industries, will reduce marginal productivity of labor. Therefore, it is recommanded that more emphasis to be given to other industries such as food, chemical, and cellulose industries.

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APA: Copy

SADEGHI, A., & SEPEHRDOUST, H.. (2001). EFFECT OF GOVERNMENT CREDIT FACILITIES AND FOREIGN EXCHANGE POLICIES ON THE LABOR PRODUCTIVITY OF RURAL INDUSTRIES: A CASE STUDY OF SISTAN AND BALOUCHESTAN PROVINCE. EQTESAD-E KESHAVARZI VA TOWSE'E, 9(1 (33)), 149-160. SID. https://sid.ir/paper/528589/en

Vancouver: Copy

SADEGHI A., SEPEHRDOUST H.. EFFECT OF GOVERNMENT CREDIT FACILITIES AND FOREIGN EXCHANGE POLICIES ON THE LABOR PRODUCTIVITY OF RURAL INDUSTRIES: A CASE STUDY OF SISTAN AND BALOUCHESTAN PROVINCE. EQTESAD-E KESHAVARZI VA TOWSE'E[Internet]. 2001;9(1 (33)):149-160. Available from: https://sid.ir/paper/528589/en

IEEE: Copy

A. SADEGHI, and H. SEPEHRDOUST, “EFFECT OF GOVERNMENT CREDIT FACILITIES AND FOREIGN EXCHANGE POLICIES ON THE LABOR PRODUCTIVITY OF RURAL INDUSTRIES: A CASE STUDY OF SISTAN AND BALOUCHESTAN PROVINCE,” EQTESAD-E KESHAVARZI VA TOWSE'E, vol. 9, no. 1 (33), pp. 149–160, 2001, [Online]. Available: https://sid.ir/paper/528589/en

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