Agricultural Economics and Development

Agricultural Economics and Development

Measurement of the Socio-economic Impact of Drought in the Framework of Modified Supply-Side Social Accounting Matrix (SAM): Case Study of Farming Sector

Authors
B. Sahabi
A.A. Banouei
F. Ghahremani
10.30490/aead.2016.59034
Abstract
Abstract

In this study, according to the report of central bank, the effects of 26.1 reduction of production of farming sector - which is resulted the drought in 2007 - on the output of other sectors, decreasing of income of production factors and income of institutional were surveyed. The conventional SAM model is not appropriate for such analysis, therefore, a modified supply-side SAM which simultaneously takes into account demand-side and supply-side was used. The results according to the 2006 SAM show that from the demand-side, the impact of output reduction of 26.1 percent decreases 1.8 value added whereas decrease from supply-side is 2.9 percent of value added. These findings reveal that the forward linkage of farming sector is more important than its backward linkage.

JEL Classification: Q19, C67

Keywords:
Supply-Driven SAM, Mixed Model, Constrained Supply Model, Farming Sector