A Survey on the Relationship between Import and Demands of Work-force and Sanction Variable in Agriculture Sector

Document Type : Scientific paper

Authors

1 the university of sistan & baluchestan

2 university of sistan and baluchestan

Abstract

This study provides an overview of relationship between input & demand of work-force in agriculture sector to predict the production inputs demand functions as well as substitution elasticities (MoriShima and Allen Ozava) and input prices using Symmetric Normalized Quadratic (SNQ) cost function. In so doing, we have estimated cost share equations for all three import, work-force and capital inputs along with cost function via Simultaneous Equation System and 3SLS methods. In addition, the sanction variable has been effectively entered into demand function .The results show the substitutive correlation between production factors. In other words, from Allen-Ozava substitution elasticity we show that work-force variable substitutes capital and imports as is capital stand in for imports which are substitution inputs. Substitution coefficient between work-force and import is 1.97. We also found that Sanction dummy variable has a negative and significant effect on demand for work-force and capital variables. In other words, from Allen-Ozava substitution elasticity we show that work-force variable substitutes capital and imports as is capital stand in for imports which are substitution inputs. Substitution coefficient between work-force and import is 1.97. We also found that Sanction dummy variable has a negative and significant effect on demand for work-force and capital variables.

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References

منابع
Macroeconomics Research Letter
Volume 11, Issue 21
June 2016
Pages 33-57

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History

  • Receive Date: 14 April 2014
  • Revise Date: 11 March 2017
  • Accept Date: 01 March 2017

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