Agricultural Economics
reza heydari; Ebrahim Javdan; Mehdi Shabanzadeh-Khoshrody
Abstract
Introduction
Food prices are an important indicator of societal well-being, and food inflation can deepen poverty in developing economies. Severe food price fluctuations not only affect food security in developing countries, but also affect economic growth and social stability. Any increase in food prices ...
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Introduction
Food prices are an important indicator of societal well-being, and food inflation can deepen poverty in developing economies. Severe food price fluctuations not only affect food security in developing countries, but also affect economic growth and social stability. Any increase in food prices can push many people back below the poverty line. Rising food prices hit low-income households hard, as the household food basket accounts for nearly half of household living expenses. Therefore, food price stability is of particular importance to policymakers trying to lift households above the poverty line. Food prices in Iran have always been on the rise, and even in recent years, the rate of food price growth has accelerated. Today, inflation, especially food inflation, remains a major problem in Iran, and policymakers are always trying to reduce food inflation. In this regard, and with the aim of controlling food prices, different policies have been implemented in Iran, and the effectiveness of these policies has been discussed. Therefore, understanding the behavior of food prices in response to macroeconomic factors is essential for policymakers to implement appropriate policies at the right time and place to keep domestic prices stable. In this regard, in the present study, the asymmetric effect of macroeconomic variables (money supply, GDP per capita, exchange rate, and trade openness) affecting food inflation in Iran is examined using the nonlinear ARDL approach.
Materials and Methods
The main objective of this study is to examine the asymmetric effect of domestic macroeconomic factors on food prices in Iran using a Non-linear Autoregressive Distributed Lag (NARDL) model. According to the theoretical literature, in this study, it is assumed that food prices are a function of macroeconomic variables, including money supply (MS), GDP per capita (GDPER), exchange rate (RATE), trade openness (OPEN), and global economic policy uncertainty index (EPU). Therefore, in accordance with Shin et al. (2014), the NARDL model used in this study is developed to examine the asymmetric effect of domestic macroeconomic factors.
In this relationship, each of the macroeconomic factors (including the money supply, GDP per capita, exchange rate, and trade openness) is separated into the sum of positive and negative components. In fact, two additional variables are created in each equation, one indicating an increase in the variable of interest with a positive sign and the other indicating a decrease with a negative sign. The variable of global economic policy uncertainty index also plays the role of a control variable. Due to the availability of data, the time period in this study is 1991 to 2022.
Results and Discussion
The results of the linear and nonlinear bounds test in the ARDL model showed that there is a long-term relationship between macroeconomic variables including money supply, GDP per capita, exchange rate, trade openness, global economic policy uncertainty and food prices in Iran. In addition, the results of short-term and long-term symmetry tests using the Wald test showed that the effect of the exchange rate variable on food inflation in Iran is asymmetric in the long and short run, while the effect of the money supply and GDP per capita variables is asymmetric only in the long run; the effect of the trade openness variable is also symmetric in the short and long run and has a linear behavior. The results of the ARDL linear model estimation showed that in the short and long run, the effect of the growth of the variables of money supply, GDP per capita, exchange rate and global economic policy uncertainty on food inflation in Iran is positive and significant, while the effect of trade openness is negative and significant. The results of the NARDL model estimation also showed that the response of food inflation to increases and decreases in money supply and GDP growth is positive and significant, and their increase on food inflation is greater than the effect of their decrease. The response of food inflation in the long and short term to increases in the exchange rate is positive and significant, while the effect of decreasing the exchange rate in the long and short term is negative, but not statistically significant, and the effect of increasing the exchange rate on food inflation in the long term is greater than its effect in the short term. The effect of the variable of trade openness on food inflation is symmetric, and its increase causes a decrease in food inflation in the long and short term.
Conclusions
Linking the prices of agricultural products to market conditions and liberalizing the market for these products is an appropriate method for coordinating the effects of macro policies and specific agricultural policies that should be considered by policymakers. Given the importance of the agricultural sector, the government's economic policies in relation to food prices will be of high importance and sensitivity. Considering the results of implementing contractionary monetary policies in coordination with other Central Bank policies, increasing investment and efforts to increase productivity in the agricultural sector, appropriate foreign exchange policies are recommended to prevent unreasonable increases in the exchange rate, and reducing tariffs and trade restrictions to increase trade openness.
Agricultural Economics
M. Shabanzadeh-Khoshrody; E. Javdan; K. Shemshadi
Abstract
IntroductionDuring the last decade, due to the increase in food prices, the cost of a healthy diet in Iran has greatly increased. Although the government's support policies have aimed at improving the living conditions of households, but the cost and income information of the Iranian Statistics Center ...
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IntroductionDuring the last decade, due to the increase in food prices, the cost of a healthy diet in Iran has greatly increased. Although the government's support policies have aimed at improving the living conditions of households, but the cost and income information of the Iranian Statistics Center shows that due to inflationary conditions and its impact on real income and purchasing power of consumers, these programs have not had the necessary effect in reducing poverty and food insecurity. Reducing poverty and increasing the food security index is a requirement for independent countries like Iran. In this regard, knowing the current situation of poverty, food insecurity and factors influencing it, is not only the main condition for preparing future plans, but is necessary to continue this work with the aim of monitoring and evaluating the results of implemented plans and actions. Materials and MethodsIn the present study, the spatial distribution of poverty and food insecurity in the urban areas of Iran in 1401 has been investigated and then the factors affecting food insecurity have been identified. In order to achieve these goals, the nutritional performance matrix was drawn and calculated per capita calories in 1401 using the household income-expenditure information of Iran Statistics Center. The Aggregate Household Food Security Index (AHFSI) and the Foster, Greere and Thorbeke (FGT) poverty index were calculated and based on these indices, the spatial distribution of poverty and food insecurity in urban areas of Iran was analyzed. Finally, the impact of economic and demographic variables on food insecurity was analyzed in the framework of the logit model. Results and DiscussionAccording to the results, the urban areas of the country are in low food security conditions; so that, only 45% of people have food security and about 55% of the residents of urban areas are either facing food insecurity or are on the border of food insecurity. On the other hand, the per capita calorie intake in the urban areas of the country is 2540 kcal, and generally these calories are supplied from cereals. In addition, there is inequality in the intake of calories in different provinces of the country, and the average intake of calories varies between 1988-3196 kcal among the provinces. Examining the status of food poverty indicators also shows that the average head count, gap and intensity of poverty in urban areas are 55.1%, 15.2% and 6% respectively. Based on these indicators, it can be said that 55.1% of the population of the urban areas of the country had food poverty in 1401 and the calorie intake of the poor households in these areas was 15.2% less than the minimum required daily calories; therefore, to eliminate poverty, the caloric intake of poor households should be increased by 15.2%. Finally, the results of the logit model estimation showed that the variables of age, employment status, working hours of the head of the household, subsidy, income and food diversity have a positive and significant effect on the food security of the households, but the Family size has a negative effect on the food security. In addition, the two variables gender and literacy of the head of the household did not have a significant effect on the food security in urban areas of Iran. ConclusionIn this regard, although the long-term solution is to increase household purchasing power, stabilize and reduce commodity prices through strengthening production and supply, but in the short-term, increasing salaries and wages in line with the inflation rate and increasing social support programs for the low income deciels and weak society should be taken into consideration. In other words, income policies that can directly or indirectly increase the level of income and thus the purchasing power of the household, can be considered as a scientific and effective solution for food security. Moreover, the social support and poverty alleviation programs should be targeted and applied according to the needs and deficiencies in different geographical, demographic and income conditions. Finally, it should be acknowledged that improving the nutritional literacy of households can increase the nutritional knowledge and awareness of households, and therefore, by improving the variety and quality of the food they consume, it can lead to an increase in food security in urban areas of Iran.
Agricultural Economics
M. Shabanzadeh-Khoshrody; E. Javdan; M. Rafaati
Abstract
Introduction Dietary diversity is a feature of healthy diets. This is because essential nutrients are not present in one type of food at the same time, rather, they are found in a diet consisting of several nutrients. However, in recent years, the food tastes of Iranian families have shifted to ...
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Introduction Dietary diversity is a feature of healthy diets. This is because essential nutrients are not present in one type of food at the same time, rather, they are found in a diet consisting of several nutrients. However, in recent years, the food tastes of Iranian families have shifted to high-calorie and non-nutritional value foods, which has increased the number of patients with non-communicable diseases in the country. The choice and acceptance of different diets depends on environmental, economic, socio-cultural and psychological factors.Materials and Methods Since ensuring health and food security is one of the strategic goals of the country 20-year vision document, the present study evaluates the dietary diversity of households and its effective factors in Tehran province. To achieve this goal, the raw information of household expenditure-income in 2020 has been used. In the present study, the Berry dietary diversity index (BI) was used to quantify the dietary diversity variable and the order logit model was used to investigate and evaluate the effect of demographic, economic and social variables on it. Results and Discussion The results showed that only 23.2% of Tehran households have high dietary diversity and 76.8% of households have low or medium dietary diversity. Based on the results, the variables of head household age, place of residence, working hours of household head and household income level has a positive (direct) association and in contrast, the variables of head of household literacy, household size and employment status of head of household in a negative (inverse) direction affect the level of dietary diversity of households in Tehran province.Conclusion The food diversity of households in Tehran province is very low. If the food price level is low and stable, increasing incomes can lead consumers to diversify their food baskets and move from consuming low-value cereals and root and tuber products to consuming high-nutrition foods such as meat, dairy, and fruits and vegetables. In this regard, a review of the experience of many European, Latin American and Asian countries shows that stability in food prices along with cash aid and targeted food packages can increase consumption and food diversity of households and food security in poor households, especially women and children. Families living in Tehran province, which have a larger population, have less food diversity. As the household dimension increases, the minimum food needs increase; this reduces the volume and quality of food available to the household and leads to food insecurity. In the current situation, the country is struggling with economic problems caused by sanctions, inflation, unemployment. Continuation of this, along with lack of effective support for families, can deprive families of the ability and facilities to have more children due to food insecurity. Accordingly, the correct and complete design and implementation of incentive policies and support for large families is necessary. Finally, the role and importance of education and literacy of households in their food diversity is very high. In this regard, responsible organizations can play an important role in obtaining, processing and understanding nutrition information and how to access credible information sources through culture and specialized and general training in food literacy.
Agricultural Economics
M. Rafaati; M. Shabanzadeh-Khoshrody; E. Javdan
Abstract
Introduction: The rapid acceleration of inflation over the past decade has increased the cost of living in the metropolitan area of Tehran. The World Food Program (WFP) report shows that Tehran province has the highest rate of welfare inequality compared to other provinces in Iran, and a significant ...
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Introduction: The rapid acceleration of inflation over the past decade has increased the cost of living in the metropolitan area of Tehran. The World Food Program (WFP) report shows that Tehran province has the highest rate of welfare inequality compared to other provinces in Iran, and a significant portion of the province's population has only abdominal satiety. This has led to an increase in short stature, cardiovascular disease, cancer, obesity, diabetes, tooth decay and gastrointestinal diseases among Tehran families. In this regard, although with the decision of the Working Group on Health and Food Security and the participation of various agencies, programs have been carried out to improve the level of health and nutrition of the residents of the province, but the prevalence of various deficiencies and diseases may be due to lack of nutrients in the food basket and as a result of food insecurity.Materials and Methods: Since ensuring health and food security is one of the strategic goals of the 20-year vision document of the country, in the present study, households living in Tehran province were first divided into three lower income deciles, four middle deciles and three upper income deciles according to the raw data of the income expenditure of the Statistics Center of Iran. Then based on the classification of the commodity group of the Statistics Center of Iran and using the nutritional performance matrix, the level of nutrient intake in different income deciles of Tehran province in 2018 has been investigated. Then, using the Matching method, nutrient consumption, the diversity and food security of the province's income deciles have been analyzed.Results and Discussion: The results showed that the level of calcium, iron and vitamin C intake among households in the lower three deciles of Tehran province is very low and an adult received only about 14, 487 and 75 mg of these three nutrients per day. As for other nutrients, an adult in the lower three deciles of income received protein and vitamin A 72 mg and 551 micrograms, respectively which is at the minimum daily requirement and only carbohydrates and vitamin B1 has been received 339 g and 1.5 mg, respectively which is above the minimum daily requirement. It should be noted that in all income deciles, the level of carbohydrate intake is more than triple the daily threshold required by an adult (130 g). Finally, according to the results, the lower three deciles of income have lower diversity and food security than the other deciles.Conclusion: Considering the current situation of receiving micronutrients in Tehran province, the culture and nutritional literacy of households has a great importance and role that responsible organizations can play an important role in promoting it through culture as well as specialized and general education. At the same time, the stability of food prices along with the provision of cash grants and targeted food packages can increase the consumption and food diversity of households and significantly increase food security in poor households, especially women and children. In this regard, considering that a significant part of the country's resources is wasted annually in the form of hidden and non-targeted subsidies, Iran ranks first in the world in the payment of non-targeted food and fuel subsidies, therefore, targeting subsidies and paying cash and non-cash subsidies with proper identification of the target community, in accordance with the conditions of the country is an important issue that should be considered by policy makers.
M. Piri; E. Javdan; S. Faraji Dizaji
Abstract
Abstract
Oil export revenues have a major share in both Iranian government incomes and Gross domestic product (GDP). With regard to the importance of agricultural sector in economic growth, rural development and rural welfare improvement, this sector indubitably influenced by temporary and unexpected ...
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Abstract
Oil export revenues have a major share in both Iranian government incomes and Gross domestic product (GDP). With regard to the importance of agricultural sector in economic growth, rural development and rural welfare improvement, this sector indubitably influenced by temporary and unexpected shocks in oil export. Therefore we employed Feder(1982) and Auto-Regressive Distributed Lag (ARDL) models to investigate the effects of oil export instability on agricultural growth in Iran during 1972-2007 period. The results show that there is a long run relationship and co integration between agricultural value added and other variables in specified model. Also, accompanied by other variables the effects of oil exports fluctuations as a new variable is negative and significant.
Keywords: Agriculture, Oil export fluctuations, Co integration, ARDL Model
JEL Classification: C22 , Q1 , O13
H. Mehrabi Boshrabadi; E. Javdan
Abstract
Abstract
Research and Development (R&D) spending plays a major role in innovation, raising productivity and increasing economic growth. The purpose of this paper is to investigate the impact of R&D spending on growth and total factor productivity (TFP) in Iran's agricultural sector. We estimate growth ...
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Abstract
Research and Development (R&D) spending plays a major role in innovation, raising productivity and increasing economic growth. The purpose of this paper is to investigate the impact of R&D spending on growth and total factor productivity (TFP) in Iran's agricultural sector. We estimate growth and productivity models using Auto-Regressive Distributed Lag (ARDL) approach and data over 1974 to 2007. Our results indicate that research and development spending has positive and significant effects on growth and total factor productivity in Iran's agricultural sector in short and long term. Therefore research and development can be used a main source of further growth of agricultural sector.
Keywords: Agricultural Sector, Total Factor Productivity, Research and Development, Growth, Iran
JEL Classification: O4, D24, Q16