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Drivers of Regional Total Factor Productivity in Irans Agriculture

. Mohammadreza Yousefi Reza Moghaddasi and Yaghoob Zeraatkish


Abstract

This paper measures and analyzes total factor productivity index of the Iran’s agricultural sub-sector’s production in farming as well as its components including the technical efficiency change and the technological advancements in 27 provinces of the country for the period spanning from 2009 to 2018 through the non-parametric method of data envelopment analysis, and Malmquist productivity index. According to the results, the average total factor productivity  in the provinces of Gilan, Ghazvin, Ardabil, Boushehr, Golestan, Razavi Khorasan, Hamedan, Kurdistan, Fars, Sistan and Baluchestan, Kohgiluyeh and Boyer-Ahmad, Isfahan, Chaharmahal and Bakhtiari, Zanjan, Tehran, Mazandaran, Hormozgan, West Azerbaijan, North Khorasan, and Khuzestan is greater than 1, which indicates its growth in the time period mentioned. However, this index is less than 1 in the agricultural sub-sectors of provinces of Kermanshah, South Khorasan, Lorestan, East Azerbaijan, Yazd, Kerman and Ilam, which indicates its reduction in the time period under examination. According to the findings, in the agricultural sub-sectors of Gilan, Ghazvin, Boushehr, Golestan, Razavi Khorasan, Hamedan, Kurdistan, Fars, Isfahan, Chaharmahal and Bakhtiari, Zanjan, and Tehran provinces, total productivity of agricultural sub-sector’s growth rooted from increased technical efficiency as well as technological advancement. In the provinces of Boushehr, Sistan and Baluchestan, Hormozgan, Kermanshah, and Kerman, however, the technical efficiency remained steady, and the change of progress of technology led to total factor productivity growth of agricultural sub-sectors.

Keywords: total factor productivity, data envelopment analysis, Agriculture, Iran.

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