University of Tehran Iranian Journal of Agricultural Economics and Development Research 2008-4838 49 3 2018 09 23 Investigating the effect of changes in the production of agricultural raw materials on the production of processed food products (An Input-Output Analysis) Investigating the effect of changes in the production of agricultural raw materials on the production of processed food products (An Input-Output Analysis) 381 395 69080 10.22059/ijaedr.2018.242636.668494 FA Vahideh Ansari Assistant Professor, Department of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran 0000-0001-7400-8396 Habibollah Salami Professor, Department of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran 0000-0002-6277-5843 Atieh Motaghi Jazi MSc. Student, Department of Agricultural Economics, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran Journal Article 2017 09 27 Production in agricultural sector is always facing with some fluctuations. Since this sector provides inputs for most of the economic sectors, fluctuations in production of agricultural sector are transferred to the related sectors and, results in fluctuation in these sectors. Given that food and beverage industries are the main industries using agricultural products, the purpose of the present study is to investigate the effect of production changes in agricultural subsectors (crops and horticulture, livestock and poultry, fisheries and forestry) on the production of food and beverage industries. To this end, Ghosh supply-driven model based on input-output table is applied as the analytical framework. In addition, to investigate the effect trend of the production change in agricultural sector on the food and beverage products over past three decades, input-output tables of 1986, 1991, 2001 are utilized. Results indicate that changes in production of agricultural sub-sectors have the highest effect on food and beverage industries relative to the other economic sectors. Moreover, investigation of changes in the linkage between agricultural subsectors and food and beverage industries over studied period shows that linkages of the fisheries sub-sector have increased. For livestock and poultry sub-sector, these linkages remained constant, where the other agricultural sub-sectors have experienced a decrease in linkages with food and beverage industries. These result lead to the conclusion that, to create more values from crops and horticultural products, the expansion of food industries which are more related to these products, has to be considered more seriously. Production in agricultural sector is always facing with some fluctuations. Since this sector provides inputs for most of the economic sectors, fluctuations in production of agricultural sector are transferred to the related sectors and, results in fluctuation in these sectors. Given that food and beverage industries are the main industries using agricultural products, the purpose of the present study is to investigate the effect of production changes in agricultural subsectors (crops and horticulture, livestock and poultry, fisheries and forestry) on the production of food and beverage industries. To this end, Ghosh supply-driven model based on input-output table is applied as the analytical framework. In addition, to investigate the effect trend of the production change in agricultural sector on the food and beverage products over past three decades, input-output tables of 1986, 1991, 2001 are utilized. Results indicate that changes in production of agricultural sub-sectors have the highest effect on food and beverage industries relative to the other economic sectors. Moreover, investigation of changes in the linkage between agricultural subsectors and food and beverage industries over studied period shows that linkages of the fisheries sub-sector have increased. For livestock and poultry sub-sector, these linkages remained constant, where the other agricultural sub-sectors have experienced a decrease in linkages with food and beverage industries. These result lead to the conclusion that, to create more values from crops and horticultural products, the expansion of food industries which are more related to these products, has to be considered more seriously. https://ijaedr.ut.ac.ir/article_69080_cfa7fe86ff0b4a0dafcd7a69ae41fecc.pdf