Integrated Management Strategies for Inputs Demand and Output Supply of Rice in Mazandaran Province

Subject Areas : Agricultural Economics Research

Esmaeil Fallahi ¹ , Sepideh Gholinezhad ²

1 - Assistant Professor of Agricultural Economics, Shiraz University, Shiraz, Iran
2 - Young Researchers and Elite Club, Ghaemshahr Branch, Islamic Azad University, Ghaemshahr, Iran.

Received: 2015-05-31 Accepted : 2018-02-12 Published : 2018-01-21

Keywords: Input Demand, Output Supply, Translog Profit Function, Iterative Seemingly Unrelated Regressions (ISUR),

Abstract :

    Increased demand for rice and limitations of production inputs have often led into problems such as increase in rice import; so that it is required to come up with a framework that provides us with effective managerial strategies towards production factors and output supply management simultaneously. Therefore, this research concurrently studies the inputs demand and supply functions of rice in Mazandaran Province, the largest rice producer in Iran. To this end, ISUR and data of 2013-2014 periods were used. Own- and cross-price elasticities of inputs demand verify the expected negative effect of price on the amount of input demand and existence of substitutive relationships between inputs. Moreover, the own-price elasticity of supply and elasticity of supply to inputs price show that farmers are relatively sensitive to inputs and outputs price changes. According to the results,  any achievement in price policies to provide more efficient managerial strategies to improve input demand and output supply management is hugely contingent on a simultaneous concentration on both the input demand and the output supply conditions.

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