Agricultural Economics
M. Bakeshloo; Gh.R. Yavari; A. Mahmoudi; A. Nikoukar; F. Alijani
Abstract
One of the most important economic policies in most countries is to support producers or consumers through subsidies. The category of green subsidies has been proposed in the direction of agricultural development, which is in line with the law on targeted subsidies, but in a real way. Green subsidies ...
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One of the most important economic policies in most countries is to support producers or consumers through subsidies. The category of green subsidies has been proposed in the direction of agricultural development, which is in line with the law on targeted subsidies, but in a real way. Green subsidies belong to farmers and are used to boost business and industry in the agricultural sector. The purpose of this study is to investigate the effects of Iran's accession to the World Trade Organization by applying a simulated green subsidy policy on the variables of employment, investment, and value added in the agricultural sector, which is designed in the form of 20%, 50% and 100% scenarios. The model was calibrated using the social accounting matrix of 2011 and the baseline scenario (0% of green subsidies). GAMS software was used to analyze the data in this research. The results show an increase in employment in the agricultural sector during the effects of Iran's accession to the World Trade Organization and by applying the green subsidy simulation policy, in 20, 50 and 100% scenarios. Also, the implementation of green subsidy policy has led to an increase in investment in the agricultural sector.This is due to the increased production in this sector and as a result, increase in the use of intermediate inputs. The results obtained from the mentioned shocks show that value added in the agricultural sector has an upward trend, which is due to the increase in the use of factors of production in this sector.
F. Alijani; M. Salarpour; M. Sabouhi
Abstract
Considering the importance of the impact of subsidy reform on the agricultural sector, the study aimed at understanding consequences of changes in the rates of production subsidy using General equilibrium model based on input-output table in the year 2001.The study conducted based on three scenarios ...
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Considering the importance of the impact of subsidy reform on the agricultural sector, the study aimed at understanding consequences of changes in the rates of production subsidy using General equilibrium model based on input-output table in the year 2001.The study conducted based on three scenarios containing step, down and finally removed rates of production subsidy. The effects on production, value added, employment, export and import activities in the agricultural sector were analyzed. Results showed that production, value added and export of cultivation, livestock and poultry activities have been reduced more than other activities in the field. Results also showed that employment in sub-sections of the agricultural sector and paltry activities have been reduced. Furthermore, elimination of production subsidies had a negative impact on the fish imports, while the impact was positive for imports of other products. Therefore, since the policy had negative impact on the agricultural products, supporting agricultural sector along with reduction in the government’s expenditures is recommended.
