Agricultural Economics and Development

Agricultural Economics and Development

The Effect of Knowledge-Based Economy on Value Added of Agricultural Sector in Iran

Document Type : Original Article

Authors
Saman Ziaee 1
samira amirzadeh moradabadi 2
Kh Samareh Hashemi 2
Homa Narouei 3
1 Assistant Professor of Agricultural Economics, University of Zabol, Zabol, Iran
2 Ph.D. Student of Agricultural Economics, University of Zabol, Zabol, Iran
3 M.Sc in Agricultural Economics, University of Zabol, Zabol, Iran
10.30490/aead.2018.73548
Abstract
The purpose of this study was to evaluate the effect of knowledge-based economy on value added of Iran’s agricultural sector from 1989 to 2014. To investigate the long-term relationship between the value added of the agricultural sector and ICT index, R&D index, extension and education index, capital and labor variables, Johansen-Juselius Co-integration method and error correction model (ECM) were used. The results of long-term function estimation of the model show a positive and significant impact of ICT index, research and development index, and capital and labor variables on value added of the agricultural sector. The effect of agricultural extension and education index on value added of the agricultural sector was positive but it was not statistically significant. In addition, the results of error correction model show that almost 53% of short-term deviations of the agricultural sector value added from its long-run equilibrium are modified in a period. Hence, the increase in research and development credits in the budget of agricultural sector can be effective in growth of value added of this sector.
Keywords
ICT Index
Knowledge-Based Economy
R&D Index
Value Added
  1. Alston, J. M., Craig, B. and Parday, P. (1998). Dynamics in the creation and depreciation of knowledge and the returns to research. EPTD Discussion Paper No35, Washington, and D.C: International Food and Policy Research Institute. Available at: Htpp://www.Ageconseraech. Umn.Edu/Bitsream/16102/1/ept-dp35,Pdf.
  2. Bertolini, R. (2004). Making information and communication technologies work for food security in Africa. Conference Assuring Food and Nutrition Security in Africa by 2020, Uganda.
  3. Central Bank of Islamic Republic of Iran. (2013). Summary of economic developments in the country. (Persian)
  4. Central Bank of Islamic Republic of Iran, Time Series Bank, National Accounts, Value Added Agriculture,1988-2014. (Persian)
  5. Changani, S., Mehrabani, F. and Ghanadi, S. (2013). Comparison of the effect of knowledge-based economy on economic growth: a case study of Iran and member countries of the Organization for Economic Co-operation and Development. The First National Electronic Conference on the Perspective of Iran's Economy with the Approach to Supporting National Production, Islamic Azad University, Khorasgan Branch(Esfehan):1-24. (Persian)
  6. Chavula, H. K. (2013). The Role of ICTs in agriculture production in Africa. Journal of Development and Agricultural Economics, 6(7): 279-289.
  7. Fare, R., Grosskopf, S. and Margaritis, D. (2008). US productivity in agriculture and R&D. Journal of Productivity Analysis, 30(1): 7–12.
  8. Gutierrez, L. and Gutierrez, M. (2003). International R&D spillover and productivity growth in the agriculture sector: a panel co-integration approach. European Review of Agricultural Economics, 30: 281-303.
  9. Hall, J. and Scobie, G.M. (2006). The role of R&D in production growth: the case of agriculture in New Zealand 1927-2001. New Zealand Treasury Working Paper 06/01.1-64.
  10. Hasan, Md.F., Imai, K.S. and Sato, T. (2013). Impact of agricultural extension on crop productivity, poverty and vulnerability: evidence from Uganda. Working Paper.
  11. Hosseininia, Gh. (2008). A summary of the promotion of education and agriculture. Tehran: Aish Publishing. (Persian)
  12. Irish LEADER Network. (2000). Strategic plan. Journal of Rural Studies, 14(1):10-14.
  13. Jalaee, S. A. and Zeynali, S. (2013). Impact of information and communications technology on growth of agriculture sector. Asian Journal of Management Sciences and Education, 2(2): 182-191.
  14. Johansen, S. and Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money.  Oxford Bulletin of Economics and Statistics, 52: 169-210.
  15. Lin, Y.J. and Huffman, W.E. (2001). Rates of return to public agricultural research in the presence of research spillovers. Paper Presented at the American Agricultural Economics Association Meetings. Chicage, Illinoi.
  16. Mohamadzadeh, H., Rezaee, J., Faghihnasiri, M. and Tavakoli Baghdad, M. (2007). Assessing the efficiency of knowledge-based economy using mathematical programming model (Iran and regional countries). Economic Research, 10(1):115-135. (Persian)
  17. Mosavi Jahromi, Y. (2014). Economic development and planning. Tehran: Payame Noor University Press. (Persian)
  18. Nird. (2004). ICTs (Information and Communication Technologies) for Agricultural and Rural Development.
  19. Noferesti, M. (2008). The root and coexistence in econometrics. Second Edition, Tehran: Rasa Publication. (Persian)
  20. Planning and Budget Organization, Reports of the Presidential Planning and Strategic Delegation, 2014. (Persian)
  21. Rabiee, M. (2008). The role of R & D in economic development of countries. Journal of growth and technology, 4(15):35-40. (Persian)
  22. Rivera W.M. (2006). Developing agricultural extension system nationwide. Journal of Extension System, 25(2): 29-30.
  23. Shahabadi, A. and Bashiri Monazam, F. (2011). The role of knowledge components in the growth of value added of Iranian agricultural sector. Journal of Village and Development, 14(4):105-125. (Persian)
  24. Statistical Center of Iran. Public Census of Population and Housing, 1956-2011. (Persian)
  25. Vaez, M., Tayebi, S. K. and Ghanbari, A. (2007). Role of research and development costs in value added industries with high technology. Journal Economic Reviews,4(4):53-72. (Persian)
  26. World Bank (1989 and 2014). World Development Indicators. Available at www.worldbank.org.