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Determinants of the location choices in sugar industry of Iran: using the logit & probit model

Author

Listed:
  • Mehdi MOGADDAM

    (State University of Baku, Baku, Azerbaijan and Islamic Azad University, Bonab Iran)

  • Soleyman IRANZADEH

    (Islamic Azad University, Tabriz, Iran)

  • Hossein BEVRANI

    (University of Tabriz, Tarbiz, Iran)

Abstract

The main objective of this research is to offer a model for determining the most proper location for investment in sugar industry. This model classifies the possible options for investment, taking into account several variables. The orientation of this research is an applied orientation and its objective is an explorative one. Therefore, no hypothesis is proposed to prove it. The required data for determining the parameters of the model is extracted from statistical yearbooks of the Iran Ministry of Agriculture during 1996 to 2006. According to the results obtained from this research, if new investments in sugar industry are carried out based on the offered classifications and pattern, the profitability will definitely increase.

Suggested Citation

  • Mehdi MOGADDAM & Soleyman IRANZADEH & Hossein BEVRANI, 2010. "Determinants of the location choices in sugar industry of Iran: using the logit & probit model," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(9), pages 443-448.
    • Handle: RePEc:caa:jnlage:v:56:y:2010:i:9:id:51-2009-agricecon
    DOI: 10.17221/51/2009-AGRICECON
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    1. Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20, February.
    2. Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
    3. Walter Isard, 1948. "Some Locational Factors in the Iron and Steel Industry since the Early Nineteenth Century," Journal of Political Economy, University of Chicago Press, vol. 56(3), pages 203-203.
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