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Abstract
Agriculture has a multifunctional role in economic development in
developing countries; besides providing food for growing population,
it is a major source of economic growth. Furthermore, growth
originating from agriculture is known to be twice as effective in poverty
reduction as growth originating from other sectors. Technical progress
is a major factor in stimulating agricultural growth. This paper aims to
investigate the role of technical progress in agricultural growth. For
this purpose, an endogenous growth model applied to the agricultural
sector of Iran. The results show that growth in physical capital and
material inputs have had the main role in growing the agricultural
sector of Iran. Technical progress, found to be the second significant
source of the growth. The effect of growth in employed labour on the
value-added growth was not significant. The path of technical change
found to be neutral, with global innovation spill-over and human
capital indices affecting it significantly.