Effect of risk management and development of mechanization on total factor productivity of agronomy and horticulture sub-sectors

Document Type : Research Paper

Authors

1 PhD. Candidate, Agricultural Economics, University of Tehran, Iran

2 Professor, Agricultural Economics, University of Tehran, Iran

Abstract

Economic growth as an important indicator has always considered by policy makers. In presence of production inputs constraints, the most appropriate way of growing each sector is increase of productivity. In the agricultural sector due to several risks that farmers face as a result of activity in an open environment, productivity is also affected by these risks. Because of the importance of agriculture in the economy and food security, some strategies should be devised to reduce the risk that mechanization and infrastructure development for reducing the risk of cropping, expansion of insurance and crop diversification are taking place in this category. Hence, the present study has measured total factor productivity of agronomy and horticulture subsectors by using the Tornquist-Theil Index for years 1974-2007 and then by estimating a regression model, influence of the above factors on productivity has been evaluation. The average of total factor productivity growth of agronomy and horticulture subsectors was 0.96 for this period. The results showed positive effect of crop diversification and insurance on productivity and also, it will be reduced by excessive use of tractor.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 45, Issue 3 - Serial Number 3
October 2014
Pages 395-402

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