Effects of Yaghoti Grape Cultivation on Economy of Rural Families in Sistan and Baluchistan Province

Grape cultivation is an important means to create job opportunities and augment income in Sistan and Balouchestan province of Iran. The geographical location and the climate of the region make it very suitable for production and export of grapes. If better modern production methods and marketing strategy is employed, it will prove to be an added advantage for the region. In today’s world, breeding farmers face tough conditions, like recent droughts. In this study to investigate the effects of Yaghoti grape cultivation on the economy of Sistan families with utilization of production function like One degree and Cobb Douglas along with ordinary least square method and Eviews software were used. During the investigation in 2008-2009 some data was collected, by randomly selecting breeding farmers and given questionnaires to fill in. Independent variables of this production function are costs, manure, chemical fertilizer, labor, machinery, poisons, other costs, land (m2) and depended variables is grape products value. All Coefficients 0.88 and 0.61 and calculated elements (except chemical fertilizer) are positive. The sum of coefficient’s Cobb-Douglas is more than one and shows an increase return to scale. Production elasticity, except in chemical fertilizer which is negative one, all are positive and less than one and labor production elasticity is higher than other inputs. by paying attention to the increasing unemployment in Sistan and Baluchistan province, high labor production elasticizes can provide appropriate field for creating jobs and decrease unemployment in province.