Impact of the Sugar Import Reduction on Iran Economic Value Added (Input- Output Approach)

Document Type : Research Article

Authors

• F. Hayatgheibi
• A. Karbasi

Agricultural Economics Department, Collage of Agriculture, Ferdowsi University of Mashhad

10.22067/jead2.v1391i6.18510

Abstract

The present study aimed at understanding interactions and linkages between the sugar sector with other economic sectors, and the influence of sugar import reduction on the economic value added. To achieve the purpose, the Input-Output table of Iran for the year 2006, Leontief inverse matrix and hypothetical extraction method were used. Based on the results, sugar industry has the most forward linkages with “Manufacture of food products and beverages,…”, “husbandry, aviculture,…”, “cultivation, horticulture”, “bakery products” and “restaurants”. This sector has also strong backward linkages with “cultivation, horticulture”, “chemicals and chemical products”, “other services”, “transport and telecommunication” and “financial services, insurance and bank”. Furthermore, either one unit increase in the final demand of sugar or one unit decrease in the sugar import increases the output of whole economic, agricultural and fishing, industry and mining, and services sectors by 2.3060, 0.6019, 1.4331, and 0.2710 unit, respectively. The increasing coefficients of the value added for the above sectors are 0.4308, 0.3700, and 0.1992 unit, respectively.

Keywords

• Sugar industry
• Input-output
• Value added JEL CLASSIFICATION: L5
• L66
• C67

20.1001.1.20084722.1393.28.1.1.2

---