Examining Subsidy Polices on Maize Production in Iran (Panel Data approach)
محورهای موضوعی : Environmental policy and managementNegin Hosseingholizadeh 1 , Jafar Haghighat 2 , Rassul Mohammadrezaei 3
1 - Graduate Student of Agriculture Economy, Iran-Tabriz University, Iran
2 - Professor, Department of Agriculture Economy, Iran-Tabriz University, Iran
3 - Professor, Department of Agriculture Economy, Iran-Tabriz University, Iran
کلید واژه: Iran, Panel Data, Maize, Subsidy, Production function, Input demand function,
چکیده مقاله :
Among the agricultural important factors, inputs are the most significant in agricultural production. This article aimed to examine the impact of government subsidy policies on production of one of the most strategic products, namely on production of one of the most strategic products, namely maize, in Iran. To achieve this goal, panel data for the nine provinces of Iran's major producers of maize during the period of 1999-2007, is used. In this study, first the country's maize production function has been estimated by using data information for inputs: chemical fertilizer, labor, water, seeds and pesticides. And then, calculating the partial elasticity of production factors,sensitivity of production to changes in the value of inputs is evaluated. Also, using a methodology based on the maximum profit, inputs´ demand function is calculated.Results of analyzing government Subsidy Policy showed that, paying subsidy to chemical fertilizer decreases maize production 0.412 percent, because of low demand elasticity of this input. Also according to subsidy of seed, with regard to low demand elasticity of this input to its price, paying subsidy that decreases seed price, wouldn´t have so high effect on its consumption and consequently, on production growth, so that maize production only increased 0.478 percent due to paying subsidy to seed.
Among the agricultural important factors, inputs are the most significant in agricultural production. This article aimed to examine the impact of government subsidy policies on production of one of the most strategic products, namely on production of one of the most strategic products, namely maize, in Iran. To achieve this goal, panel data for the nine provinces of Iran's major producers of maize during the period of 1999-2007, is used. In this study, first the country's maize production function has been estimated by using data information for inputs: chemical fertilizer, labor, water, seeds and pesticides. And then, calculating the partial elasticity of production factors,sensitivity of production to changes in the value of inputs is evaluated. Also, using a methodology based on the maximum profit, inputs´ demand function is calculated.Results of analyzing government Subsidy Policy showed that, paying subsidy to chemical fertilizer decreases maize production 0.412 percent, because of low demand elasticity of this input. Also according to subsidy of seed, with regard to low demand elasticity of this input to its price, paying subsidy that decreases seed price, wouldn´t have so high effect on its consumption and consequently, on production growth, so that maize production only increased 0.478 percent due to paying subsidy to seed.
| 1- Ashrafzadeh, H., & Mehregan, M. (2008). Panel Data Econometrics, Institute of Cooperative Research of Tehran University, 38. | ||||
| 2- Azizan, A., & Salami, H. (2005). Choosing appropriate production function form of rice in Iran. Fifth Biennial International Conference Iranian Agricultural Economy, Zahedan, Sistan-Baluchestan University. | ||||
| 3- Debrah, k. (2002). Agricultural Subsidies In Sub-Saharan Africa: a Seflection, IFDC Africa Division APIA Workshop, Lome. | ||||
| 4- Dejpasand, F. (1991). Review effect of fertilizer subsidy changes in production of (sugar beet), MS Thesis of Economics, Department of Economics and Political Science, Shahid Beheshti University. | ||||
| 5- Gujarati, D. (2003). Basic econometrics, Mc-Grow-hill. | ||||
| 6- Hosseinzad, J., & Salami, H. (2004). Select production function to estimate economic value of agricultural water (case study of wheat production). Agricultural economics and development, number 48. | ||||
| 7- Jhonston, J., & Dinardo, J. (1997). Econometric Methods, Mc Graw-Hill. | ||||
| 8- Khazayi, M. (2008). Foreign direct investment and value added of oil sector (case study, elected countries of OPEC), MS Thesis of Economics, Department of Economics, Tehran University. | ||||
| 9- Parmeh, Z. (2004). Review clear and estimate hidden subsidies in Iran Economy, Commercial reviews, 6: 32-42. | ||||
| 10- Rashidghalam, M. (2009). Effects of removing agricultural production factors subsidies on Sugar Beet production in Iran, Department of Agriculture, Tarbiyat Modaress University. | ||||
| 11- Raymond, Z., & Renfro, H. (1992), Fertilizer price and subsidy Polices in Bangladesh, World Development, 20(3): 437-455. [DOI via Crossref] | ||||
| 12- Thompson, C. D. (1988). Choice of flexible functional forms: Review and appraisal, Western Journal of Agricultural Economics, 13: 169-183. | ||||
