Checking the effect of granted credits on demand for labor in sub-sectors of agriculture

Subject Areas : Agricultural Economics Research

Y. Bostan ¹ , S. shafei ² , Ahmad Fatahiardakani ³ , Rahman Erfani ⁴

1 - M.Sc. of Agricultural Economics, Ardakan University, Iran.
2 - Ph.D. Student of Natural Resources and Environmental Economics, Shiraz University, Shiraz, Iran.
3 - Associate Professor of Agricultural Economics, Ardakan University.
4 - Rice Research Institute of Iran, Agricultural Research Education and Extension Organization, Amol, Iran.

Received: 2018-10-09 Accepted : 2020-10-17 Published : 2021-04-21

Keywords: Iran, agriculture sector, granted credits, Labor force demand,

Abstract :

Agriculture sector is one of the most important sectors in the country’s economy having a big contribution in employment of the whole country and despite the lack of some basic requirements regarding the existing global conditions inevitably we have to get help of it to cope with the challenges of employment in the country. Therefore, investigating and recognizing the effective factors on agricultural sector employment seems necessary. With respect to the significance of the issue, Regarding the importance of the issue, the present study examines the effects of credits and facilities on employment in the sub-sectors of agriculture (agriculture, livestock and fisheries) using combined data for the period of 1991-2016. Results revealed that the granted credits to the agricultural sector have a significant positive effect on the labor demand of agricultural sub-sectors. Therefore, accurate monitoring on how to use the granted credits, appraisal of the credit schemes and attention to the optimal distribution of credit regarding the economic potentials are among those that have to be taken into consideration in order to have more efficiency.

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