Assessment of the Effect of Input Subsidy Support on Iran\'s Agricultural TFP

One of important producer supporting policy is input subsidy supporting and one of important economic variable is progressing in productivity. Hence, in this article, in addition of producer supporting policy and input subsidy supporting evaluating (by using of BP, MPS and PSE indices), effect of input subsidy supporting on agricultural TFP are assist (by using OLS regression model) for years of 1989-2009 (1st - 4th developing program). Results indicate that input subsidy supporting effect on TFP is negative and equal to -0.059 in short run and is positive and equal to 0.023 in long run. Research, education and promotion variable effect in short run and log run is 0.015 and 0.205, respectively. So, it seems that input subsidy supporting on TFP in addition to research, education and promotion policy could have positive effect on agricultural TFP progress.

JEL Classification: H24, H25, Q16

Keywords:
Supporting Policies, Input Subsidy Supporting, TFP, Agricultural Sector, Iran