Author/Authors :
Hosseingholizadeh، Negin نويسنده Graduate Student of Agriculture Economy, Iran-Tabriz University, Iran. , , Haghighat، Jafar نويسنده Professor, Department of Agriculture Economy, Iran-Tabriz University, Iran. ,
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 Iranʹs major producers of maize during the period
of 1999-2007, is used. In this study, first the countryʹs 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.
