Using the Economic Surplus Model to Assess the Return of Investment in Agricultural Research: A Case study Agricultural Research center of South of Kerman Province

Document Type : Research Paper

Authors

• mahdiyeh saei ¹
• NOORMOHAMMAD ABYAR ²

¹ Economic, Social and Extension Research Department, Kerman Agricultural and Natural Resources Research and Education Center, AREEO, Kerman, Iran.

² Economic, Social and Extension Research Department, Golestan Agricultural and Natural Resources Research and Education Center, AREEO, Gorgan, Iran

10.30495/jae.2024.32154.2391

Abstract

Assessing the economic effects of agricultural research provides useful information to justify investment in agricultural sector research and development. In order to determine the effect and return of investment in agricultural research to guide policy making and investment in this field, a study was conducted in the south of Kerman province.

In the present study, the economic effects of the south of Kerman agricultural and natural resources research and education center activities, were evaluated using the economic surplus model.

Based on the findings of the research, the internal rate of return of the investigated center was 44% and more than the acceptable rate of capital return (15%). Also, the average benefit-to-cost ratio was 6 and the net present value of its benefits, 739214360852 rials. In other words, each rial invested in the research activities of that center has created 6 rials of efficiency and economic effectiveness, and has led to the growth of productivity and increased the agricultural products, including crops, horticulture, livestock, poultry, etc.

Keywords

• Agricultural Research
• Economic Surplus Method
• Evaluation of Economic Effects
• Internal Rate of Return
• South of Kerman

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