Explaining the Actual Position of Agriculture in the National Economy with Focusing on Value Added of Agribusiness

Document Type : Original Article

Authors

1 PhD in Agricultural Economics and a Researcher of Agricultural Planning, Economic and Rural Development Research Institute (APERDRI)

2 PhD in Strategic Management and Director of Agricultural Planning, Economic and Rural Development Research Institute (APERDRI)

3 MA in Economics and Manager of Trade and Support Policies Department of Agricultural Planning, Economic and Rural Development Research Institute (APERDRI)

Abstract

Calculation of macroeconomic indicators for the agricultural sector in the System of National Accounts cannot represent the actual position of the sector in national economy. In this study the actual position of the agricultural sector through the calculation of its direct and indirect effects on the national economy of Iran was estimated using time series of 1991-2014. The results of this study showed that due to agriculture share in GDP (7 percent) and the its weighted contribution to economic growth (2.68 percent) in the economic growth of the country (3.08 percent), in terms of direct impact on the national economy, agriculture located in third place after industries and service groups. Indirect effect of agriculture in the national economy according to value added of backward and forward activities of agriculture is estimated 16 percent of GDP and based on value added of forward industries related to agriculture is calculated 3.1 percent of GDP. The total share of agricultural value added based on constant prices between 2004-2014 has been about 22.5 percent of the country's GDP directly and indirectly (total effect). According to the real position of the agricultural sector in the formulation of policies related to the country's development programs, it is suggested that estimating the annual employment, exports and value added of agricultural business as indirect effective indicators of agriculture in national economy should be considered by responsible institutions of economic statistics as a national statistical plan.

Keywords

References

1.CABI (2009). Agro-Industries for development.  Available at: http://www.cabi.org/bookshop/book/9781845935764

2.Central Bank of Iran. (2015-a). National Accounts of Iran. Available at: www.cbi.ir (Persian)

3.Central Bank of Iran. (2015-b). Value Added of agribusiness. Office of Economic Accounts, Unpublished Report. (Persian)
4.Central Bank of Iran. (2016). Economic trends No 84, First Quarter 2016/2017. Economic Research and Policy Department. Available at: www.cbi.ir. (Persian)
5.Claire Schaffnit-Chatterjee (2014). Agricultural value chains in Sub-Saharan Africa. Available at: www.dbresearch.com.
6.Demirbas, N. (2007). Agribusiness in the Turkish economy. AGRIC. ECON – CZECH, 53(5): 224–229.
7.Gholami, M. (2015). Satellite accounts of information and communication technology. Two-Monthly Analytical-Research Statistics, 3(5): 15-13. (Persian)
8.Haji Rahimi, M. and Torkamni, J. (2003). Investigating the role of agricultural sector growth in Iran's economic growth: using path analysis model. Agricultural Economics and Development, 11(41 and 42): 71-90. (Persian)
9.Institute for Business Studies and Research. (2015). Export and Import Regulations of 2015. Printing and Publishing Co., Tehran. (Persian)
10.Khaledi, K. (2014). General economics of agriculture. Islamic Azad University of Kermanshah. Sarina Publication. Kermanshah. (Persian)
11.Khaledi, K. (2015). Estimation of the share of agricultural business value added in Iranian economy. Agricultural Planning, Economic and Rural Development Research Institute. Available at: www.agri-peri.ac.ir. (Persian)
12.Koopahi. M. (2004). Principles of Agricultural Economics. Tehran University Press, Tehran. (Persian)
13.Management and Planning Organization. (2015). Prioritizing Key Economic Sectors. Deputy Coordinator of Program and Budget, Macroeconomics. Available at: www.mporg.ir. (Persian)
14.Statistical Center of Iran. (2015-a). Definitions and Concepts. Available at: www.amar.org.ir/Default.aspx?tabid=276 (Persian)
15.Statistical Center of Iran. (2015-b). Annual National Accounts. Available at: http://amar.org.ir/nationalaccount. (Persian)
16.Tabibian, M. (2011). Macroeconomics. Institute for Advanced Studies in Planning and Development. Bztab publication, Tehran. (Persian)
17.Tehran Chian, A. M. (2007). The role of agriculture in Iran's economic growth (1961-2002): A descriptive-econometric analysis. Sixth Conference on Agricultural Economics, Ferdowsi University of Mashhad. (Persian)
18.UNIDO (2012). Agribusiness for Africa’s Prosperity: country case studies: working paper. Second Edition, April. Available at:  http://www.unido.org/ resources/publications/poverty-reduction-through-productive-activities/ agribusiness- and-rural-entrepreneurship.
19.Wilkinson, J. and Rocha, R. (2008). Agro-industry trends, patterns and development impacts. Global Agroindustries Forum. New Delhi.
20.World Bank (2011). Evaluative lessons for agriculture and agribusiness. Evaluation Cooperation Group, ECG Paper 3.
21.World Bank (2013). Growing Africa: unlocking the potential of agribusiness. Available at: www.worldbank.org/INTAFRICA/.../africa-agribusiness-report-2013.pdf.
22.World Bank (2015). World development indicators: structure of output. Available at: http://wdi.worldbank.org/table/4.2.

Files

Share

How to cite

Statistics