Production structure of trout aquaculture industry in Chahar Mahal Bakhtiary province, Iran

Subject Areas :

Roya  Eshraghi Samani ¹ (Ph.D. Student of Islamic Azad University of Tehran, Science and Research Branch, and Scientific Board of Islamic Azad University, Ilam Branch)
Saeed  Yazdani ² (Associate Professor of Agricultural Economic Department, Islamic Azad University of Tehran, Science and Research Branch)
Sayyadmahdi  Sadrolashrafi ³ (Professor of Agricultural Economic Department, Islamic Azad University of Tehran, Science and Research Branch)
Gholamreza  Paykani ⁴ (Assistant professor of Agricultural Economic Department, Islamic Azad University of Tehran, Science and Research Branch)

Received: 2007-11-11 Accepted : 2008-05-07 Published : 2008-04-20

Keywords: Elasticity of demand, Translog Cost Function, Production structure, Trout aquaculture, Scale economics, Factor substitution,

Abstract :

    Production structure of trout aquaculture industry in the Chahar Mahal Bakhtiary Province of Iran were studied to identify the probability of reduction in production cost. The approach given in Duality theory was found useful and the system of Translog cost function and cost share equations using pooled time series-cross section data were jointly estimated. The result of estimates showed that the production structure of the industry was non-homothetic implying that any change in the output level or scale could affect the cost shares. It was found out that the industry was labor and capital saving, and food and fish (larva) intensive. The estimated Allen partial elasticity of substitution showed the substitutability of inputs, except complementary relation of larva with food and labor. The results of study on own-price elasticities of demands in absolute values indicated that demands for labor, capital and food inputs were inelastic to changes of their price in trout aquaculture industry.  In addition, the demand for food was less responsive to change in price of labor, capital and food inputs than responsivity of demand for these inputs to change in food price.

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