Total Factor Productivity Index of Agronomy Sub-Sector in Iran and Its Determinants

Document Type : Research Paper

Authors

• mohammad reza yousefi ¹
• Reza Moghaddasi ²
• yaaghob zeraatkish ²

¹ Ph.D. Student, Department of Agricultural Economics, Extension and Education, Science and Research Branch, Islamic Azad University Tehran, Iran

² Department of Agricultural Economics, Extension and Education, Science and Research Branch, Islamic Azad University Tehran, Iran

10.30495/jae.2024.30098.2326

Abstract

This study was conducted with the aim of measuring the total factor productivity index in agronomy sub-sector of Iranian provinces. Moreover, its main determinants are identified. For this purpose, in the first step, the total factor productivity index of agronomy sub-sector in each of the studied provinces was measured and analyzed using the non-parametric approach of Malmquist productivity index hidden in data envelopment analysis (DEA-MQI) over the period 2009-2018. In the second step, using the system of seemingly unrelated regression equations (SURE), the factors affecting the total factor productivity index were estimated. Based on the research findings, the total factor productivity indices for Qazvin and Ilam provinces have the highest and lowest average levels, respectively (1.09 and 0.703). This index has annual ups and downs in all provinces, however, its average in Qazvin, Bushehr, Golestan, Khorasan Razavi, Hamedan, Kurdistan, Fars, Isfahan, Zanjan, Mazandaran, West Azerbaijan, North Khorasan and Khuzestan provinces is greater than one. It indicates the growth of productivity of all factors in the crop sub-sector of the mentioned provinces. In addition, the agronomy sub-sectors of Kermanshah, South Khorasan, Lorestan, East Azerbaijan and Ilam provinces have experienced a decline in total factor productivity so that the average values are less than one (0.981, 0.963, 0.953, 0.943, 0.925, 0.923 and 0.703). Also based on the results of estimating the system of seemingly unrelated regression equations, in most of the studied provinces, research and development, development of agricultural products processing industries, extension training of farmers, crop insurance and intensity of mechanization have a positive and increasing effect on total factor productivity of crop sub-sectors. However, in some provinces, the mechanization and supportive policy of agricultural insurance have not had a positive and increasing effect on the total factor productivity index in crop sub-sector or have had a fundamentally contrary effect on expectations.

Keywords

• Total Factor Prpductivity
• Agronomy Sub-sector
• Seemingly Unreleated Regression Equations
• Malmquist Productivity Index

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