Document Type : Research Article
Authors
1 Department of Agricultural Economics, Faculty of Agriculture, Tehran University
2 Chair, Foreign Trade and Marketing Research Department, Agricultural Planning, Economics and Rural Development Research Institute
Abstract
Abstract
Protection policies in the agricultural sector is an inevitable necessity, its accomplish effects individuals welfare and economic sectors. Protection policies account for a major economic strategy in agricultural sectors of developing and developed countries. Applying ARDL, the study investigates effects of protection policy in agricultural sector on total factor productivity of this sector during 1979-2009. Results revealed that producer protection index of agriculture sector had negative effect on TFP in short run, while significantly direct effect in long run. Considering advantages of this policy in long run, policy planning in the field of policy selection needs to be designed based on long run view. Furthermore, effective management for implementing the defined policies in short run is vital. Accordingly some short run programs, such as support of agricultural insurances for managing risks associated with agricultural productions, determining suitable support price, creating exchange markets, and protecting excessive import of agricultural products by applying suitable tarrif, are recommended by the study.
Keywords: Protection policy, Productivity, ARDL, Agriculture sector, Iran
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