Investigating on the structure and Return to scale of Rapeseed products in Iran

Document Type : Research Paper

Authors

Abstract

More than ninety percent of the domestic consumption of edible oils such as Rapeseed is provided by import.So planning for long-term and consistent with the objective of achieving self-sufficiency in the production of edible oils such as Rapeseed would be undeniable. In this study, returns to scale of rapeseed products and substitutions and price elasticity of demand for inputs are also investigated. The translog cost function for this product whit using the sectional information has estimated and structural parameters are calculated. The results show that there is structural characteristic of returns to scale in a product of Rapeseed in Iran, This means that with increasing size of farms of rapeseed, production costs will decrease. Thus, the larger farming units in comparison with smaller agricultural units have advantages in terms of cost and efficiency in the production

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