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Abstract
Nowadays, agricultural R&D provides new and developed
technologies to create modern agricultural producing
methods. During recent years, improving agricultural productivity
is affected by not only domestic R&D investments but also
foreign countries R&D investments. Nowadays, according to
new growth models, R&D is the base of productivity. Recent
economics theories consider agricultural research and it`s spill
overs as important factors for technological change and economic
growth. This paper investigates the amount of agricultural total
factor productivity in Iran and analyzes the relationship between
TFP, domestic agricultural research, and foreign agricultural
R&D during 1979 – 2008. In this study Iran`s partners are 20
Asian, European and South American countries. The Solow
residual index approach is applied for the measurement of total
factor productivity in agricultural sector of Iran. ARDL model
involving different lag length specifications were estimated
taking TFP as a dependent variable. The results indicate that
agricultural researches (both domestic and foreign R&D) have
positive and significant impact on agricultural TFP. But the
impact of foreign R&D on agricultural productivity is stronger
than the effect of domestic R&D. According to gained results
considerable portion of national product should be allocated to
R&D costs and research budget of agricultural sector should be
increased to standard level. Also government should pay attention
to it`s partner countries because agricultural R&D spill over of
developed countries is more than developing countries.