Mutual Effect of Changing Productivity between Agriculture and Industry Sectors in Iran
Javad Hosseinzad
1
(
)
mina alipour
2
(
University of tabriz, Department of Agricultural Economics, University of tabriz
)
Keywords: Agricultural sector, Added value, Productivity industry sector, Panel model.,
Abstract :
Introduction: Recognizing the nterrelationship between different economic sectors, including agriculture and industry, can be very useful for evaluating past policies and also for more effective policymaking in the future.
Materials and Methods: In the present study, the Malmquist productivity index and appropriate econometric models in the form of panel data were used for 32 provinces of the country during the years 1400-1386.
Findings; The results showed that productivity growth in the agricultural sector had a positive and significant effect on the added value of this sector, but productivity growth in the industrial sector did not have a significant effect on the added value of the agricultural sector. On the other hand, productivity growth both in the industrial sector and in the agricultural sector has a positive and significant effect on the increased value of the industrial sector. So that a one percent increase in productivity growth in the agricultural sector increases the added value of the industrial sector by 0.2 percent.
Conclusion: In terms of stimulating productivity, there is a one-way relationship from the agricultural sector to the industrial sector, while productivity growth in the industrial sector does not affect the agricultural sector. Of course, Due to the structural differences between industry and agriculture in the provinces of the country, the intensity of this relationship also varies. Therefore, by making appropriate infrastructure investments, the economic relationship between the agricultural and industrial sectors in different regions can be strengthened and further growth of both sectors can be provided.
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