IDEAS home Printed from https://ideas.repec.org/a/ags/ijamad/246095.html
   My bibliography  Save this article

Examining Subsidy Polices on Maize Production in Iran (Panel Data Approach)

Author

Listed:
  • Hosseingholizadeh, Negin
  • Haghighat, Jafar
  • Mohammadrezaei, Rassul

Abstract

Among the agricultural important factors, inputs are the most significant in agricultural production. This article aimed to examine the impact of government subsidy policies on production of one of the most strategic products, namely maize, in Iran. To achieve this goal, panel data for the nine provinces of Iran's major producers of maize during the period of 1999-2007, is used. In this study, first the country's maize production function has been estimated by using data information for inputs: chemical fertilizer, labor, water, seeds and pesticides. And then, calculating the partial elasticity of production factors, sensitivity of production to changes in the value of inputs is evaluated. Also, using a methodology based on the maximum profit, inputs´ demand function is calculated.Results of analyzing government Subsidy Policy showed that, paying subsidy to chemical fertilizer decreases maize production 0.412 percent, because of low demand elasticity of this input. Also according to subsidy of seed, with regard to low demand elasticity of this input to its price, paying subsidy that decreases seed price, wouldn´t have so high effect on its consumption and consequently, on production growth, so that maize production only increased 0.478 percent due to paying subsidy to seed.

Suggested Citation

  • Hosseingholizadeh, Negin & Haghighat, Jafar & Mohammadrezaei, Rassul, 2014. "Examining Subsidy Polices on Maize Production in Iran (Panel Data Approach)," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 4(3).
    • Handle: RePEc:ags:ijamad:246095
    DOI: 10.22004/ag.econ.246095
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/246095/files/IJAMAD%20V4%20N3%20A1.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.246095?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijamad:246095. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iraesea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.