Document Type : Original Article
Authors
1
PhD student in Development Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Iran
2
Professor, Department of Economics, Faculty of Economics & Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.
3
Professor, Department of Management, Faculty of Economics & Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran .
4
Associate Professor, Department of Economics, Faculty of Economics & Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.
10.30490/aead.2026.367704.1753
Abstract
The objective of this study is to measure and analyze technological change and its orientation toward production inputs in agriculture, given the limitations of water and other production inputs, in order to provide economic policymakers with insights into cost reduction, resource conservation, production growth, and productivity improvement. Accordingly, technological change in irrigated crops in Iran was examined for 25 irrigated crops over the period 2000–2023 . For this purpose, a translog cost function along with a system of input cost-share equations was estimated using panel data and the Seemingly Unrelated Regression (SUR) method. The results indicate that the average overall technological change, measured by the time-trend coefficient in the cost function, is −1.57, indicating that technological change over time has reduced total production costs at the sample mean. Moreover, technological change across all irrigated crops has been biased toward saving production inputs, including water, while increasing the use of machinery. The estimation of the water demand function further indicates that as technology improves, the cost share of water as an input decreases.
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