The Study of the Effect of Targeted Subsdiy on Food Industrial Sector

Subject Areas :

Mohammad Sadegh Alipour ¹ , , Mina Shariyat Jafari ²

1 - معاون اقتصادی ومحاسبات ملی
2 - دانشگاه آزاداسلامی واحد اهواز

Received: 2016-11-21 Accepted : 2017-03-12 Published : 2017-04-21

Keywords: Productivity, Target subsidies, the food industry,

Abstract :

In the Iranian economy, especially after the emergence of oil and its rise in price, we have witnessed a significant government presence in the economy and the payment of all kinds of direct and indirect subsidies to the society and manufacturing sectors. In 2010, the government took steps to liberalize prices in the energy sector and allocate proceeds to construction, housing, manufacturing, health and health sectors. Releasing energy prices can have an impact on the level of manufacturing and productivity. One of these industries associated with the daily lives of people is the food industry, which plays an important role in the economy.The purpose of this paper is to examine the effects of targeting subsidies on the productivity of food industry. Therefore, the statistical society, food industry of Iran and the research period have been considered from 2006 to 2013. Using the econometric model and with the help of Eviews software, the following results are obtained.The coefficients indicate that: The physical capital and machinery variable in the food industry is significant at 5% error level and Lee does not have the required productivity in the food industry. On the other hand, effective exchange rate is one of the variables affecting the growth of production as well as productivity. This variable is significant at the error level of 10% and has a positive effect on the productivity of food industry. The results of this paper show that the variable productivity of human capital in food industry is positive and significant.The results of this paper show that the variable productivity of human capital in food industry is positive and significant. Finally, the results show that the purposefulness of the subsidy, which is significant at 1% error level, has a positive and significant effect on the productivity of food industry. In enforcing the targeted subsidy policies, businesses have been able to improve their situation and experience a competitive environment in production and increase productivity.