Agricultural Economics and Development

Agricultural Economics and Development

Investigating the Relative Importance of Agricultural Sector among Key Sectors of Iranian Economy Based on Social Accounting Matrix Approach

Document Type : Original Article

Authors
P. Zand 1
H. Mosavi 2
1 PhD Student in Agricultural Economics, Tarbiat Modares University, Tehran, Iran.
2 Corresponding Author and Associate Professor, Department of Agricultural Economics, Tarbiat Modares University, Tehran, Iran (shamosavi@modares.ac.ir).
10.30490/aead.2022.353884.1317
Abstract
Due to the limited and scarcity of resources, determining the sectors in which investment stimulates the economy and causes more economic growth, has always been focused by many economic planners. Therefore, in the present study, the key sectors in the Iranian economy were determined by calculating the backward and forward linkages based on the 2011 social accounting matrix of the Islamic Parliament Research Center (IPRC). The results showed that in terms of backward linkage in the sectors of industry (4161.9 trillion rials), agriculture (1422.8 trillion rials), trade (1396.6 trillion rials) and services (1280.8 trillion rials) had priority over other sectors while in terms of forward linkage, the sectors of industry (6053.04 trillion rials), construction (2103.3 trillion rials), services (1992.2 trillion rials) and agriculture (1486.2 trillion rials) were respectively prioritized; in addition, the industrial, agricultural, and services sectors ranked higher in both the backward and forward linkages, respectively. Therefore, considering the determination of the mentioned key sectors, it is expected that directing resources and increasing investment in the development of these sectors can contribute to the economic growth of the country.
Keywords
Key Sections
Backward and Forward Linkages
Agricultural Sector
Social Accounting Matrix
  1. Alejandro Cardenete, M. and Sancho, F. (2006). Missing links in key sector analysis. Economic Systems Research, 18(3): 319-325.
  2. Banouei, A.A. (2004). Quantitative study of economic and social dimensions of the role of people in the process of economic development in the form of social accounting matrix. Social Deputy of the Country Management and Planning Organization,.
  3. Banouei, A.A., Asgari, A. and Mahmoodi, M. (2000). Quantitative study of the relationship between production structure and employment in different sectors of the economy using a quasi-matrix system of social accounting. The First Biennial Conference on Iranian Economy: The Main Challenges of Iran's Economy in 2001. Tehran: Tarbiat Modares University, Research Institute of Economics. (Persian)
  4. Banouei, A.A., Momeni, F., Amadeh, H., Zakeri, Z. and Karami, M. (2012). Measurement of decrease of agricultural output to the total output in the framework of supply-driven SAM. The Journal of Economic Policy, 4(7): 1-30. (Persian)
  5. Bidabad, B. (2004). Inter-sectoral relations and goal of increasing Iran's employment. Agricultural Economics and Development. 46: 107-135. (Persian)
  6. CBI (2018). Value-added and capital formation status in agriculture sector of Iran during the implementation of four development programs, 1989-2012. Tehran: Central Bank of Iran (CBI).
  7. Defourny, J. and Thorbecke, E. (1984). Structural path analysis and multiplier decomposition within a social accounting matrix framework. The Economic Journal, 94(373): 111-136.
  8. Dehghan Shoorkand, H., Tekyeh, M. and Banouei, A. (2011). Measuring the importance of sectors using the social accounting matrix approach. Journal of Economic Policy Research, 82: 139-166. (Persian)
  9. Dietzenbacher, E. and van der Linden, J.A. (1997). Sectoral and spatial linkages in the EC production structure. Journal of Regional Science, 37: 235-257. DOI: 10.1111/0022-4146.00053.
  10. Faizabadi, Y. and Roodbari, N. (2018). Investigating the position and connection of the agricultural sector with other sectors in the Iranian economy. Agricultural Economics and Development, 103: 113-144. (Persian)
  11. Farzin, M., Zandi, A. and Abdi, M. (2015). Identification of key sectors in the Iranian tourism industry (based on input-output model). Financial Economics and Development, 32: 65-79. (Persian)
  12. Guo, J., Zhang, Y.J. and Zhang, K.B. (2018). The key sectors for energy conservation and carbon emissions reduction in China: evidence from the input-output method. Journal of Cleaner Production, 179: 180-190.
  13. Hakimipoor, N. and Akbarian, H. (2016). Identification of key sectors in the Iranian tourism industry (based on Input-Output model). Applied Theories of Economics, 1: 139-160. (Persian)
  14. Hayat Gheibi, F., Shahnoushi, N., Zibaei, M. and Daneshvar Kakhki, M. (2010). Investigating the position of agricultural sub-sectors among the economic sectors of Isfahan province (with input-output approach). Agricultural Economics, 4(4): 113-129. (Persian)
  15. Humavindu, M.N. and Stage, J. (2013). Key sectors of the Namibian economy. Journal of Economic Structures, 2(1): 1.
  16. IPRC (2012). Iran's macro social accounting matrix in 2011. Available at http://www.rc.majilis.ir. (Persian)
  17. Khan, S.U. (2010). Backward and forward linkages in the ITES/BPO industry. Center for Civil Society, eSocial Sciences Working Paper, No. 2689.
  18. Khorrami, A. (2015). Realization of economic development through employment in the agricultural sector (case study of Hamedan province). Agricultural Economics and Development, 97: 25-53. (Persian)
  19. Kula, M. (2008). Supply-use and input-output tables, backward and forward linkages of the Turkish economy. The 16th Inforum World Conference, Northern Cyprus.
  20. Motiee Langroodi, H. and Shamsayee, E. (2007). Rural development based on agricultural continuity and sustainability: a case study of Sorood Saja district of Zanjan County. Geographical Research Quarterly, 86: 85-104. (Persian)
  21. Noroozi, A. (2008). Prioritization of economic groups based on input-output table; case study of Guilan province, 2002. Trend Quarterly, 54-55: 153-184. (Persian)
  22. Parmeh, Z., Maleki, B., Banouei, A.A., Andish, Y. and Karimi, M. (2011). Estimating the effects of the energy carrier subsidy transformation plan on the price level of goods and services. Quarterly Journal of Business Research, 15(58): 1-32. (Persian)
  23. Pyatt, G. and Round, J.I. (1979). Accounting and fixed price multipliers in a social accounting matrix framework. The Economic Journal, 89(356): 850-873.
  24. Rahmani, M., Shakibai, A. and Yoosefi, Y. (2013). The position of tourism sector in the economy of Kerman province using input-output analysis. The First National Conference on Tourism Management, Nature Tourism and Geography. Hamedan, Hegmataneh Association of Environmental Assessors.
  25. Rueda-Cantuche, J., Neuwahl, F. and Delgado, L. (2009). The adjustment capacity of the European economy examined with an input-output based key sector analysis: towards a review of the European single market. Brussels, Belgium: European Commission Joint Research Centre.
  26. Wen, W. and Wang, Q. (2019). Identification of key sectors and key provinces at the view of CO2 reduction and economic growth in China: linkage analyses based on the MRIO model. Ecological Indicators, 96: 1-15.
  27. Yoosefi, M. and Ghalbash Gharebolaghi, M. (2013). Determining the relative importance of sectors of the Iranian economy using the Input-Output technique. Iranian Journal of Economic Research, 53: 187-211. (Persian)