Study Of Major Factors Affecting Supply Of Potato And Onion In Iran
2006
Torkamani, J., Associate Professor, Shiraz University | Rafiei, H., Researcher, Dept. of Economic Research,
The main objectives of this study are to estimate the supply functions of potato and onion over 1980-1999, and also study the effect of nominal and real price and government's nominal rate of protection of these crops by using the Nerlove supply function. Data set were obtained from statistics information center of Agriculture Ministery and also FAO database. Dickey- Fuller (DF) and Augmented Dickey- Fuller (ADF) were used for studying of stationary data and OLS was used for estimating supply functions of potato and onion. The results revealed that real and nominal price, yield, cropping area and technological changes have affected the production of both crops positively. Whereas, the effect of variables government nominal rate of protection and lagged output on production is negative. Also the nominal rate of protection, in most of years, had been negative, indicating the negative impact of government policies on the selected crops production. This kind of protection would results in to pay a kind of hidden tax by farm producers. Besides, the nominal price of the crops and other goods influenced the decision on selected crops production.
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