Effects of Agriculture Sector Producer Support Estimate and Consumer Support Estimate on Food Security in Iran

Document Type : Research Paper

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Abstract

Considering the importance of agriculture sector for production, employment and establishing food security, different countries include developed and developing ones, support mentioned sectors in various ways. Present study investigates the effects on government support policies on Iran's food security using VECM and time series data of 1989-2013. Consumers and producers support in agriculture sector has positive effect and Significant on the food security in Iran. So that for each increase in Consumer Support Estimator, food security 0.228 has been increased. In fact, if the elasticity coefficient is expressed as a percentage increase in the index for consumer protection, food security index of 0.06 percent. This is despite the fact that for every one unit increase in the index of producer support, 0.177 unit value index increased food security. This means that for every percentage point increase in support from manufacturers, food security index 0.01 percent increase. ECM coefficient is equal to -0.489 skins. It show that the imbalance of 48.9 of the error disappears. The consumer protection policies and targeted support to producers to increase production in order to improve productivity and food security is essential.

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