Impact of government's support policies on factor productivity changes in the livestock subsector of Iran

Support policies in agricultural sector are inevitable that affects all segments of society and economic sectors. These policies includes the most important economic strategies in the agricultural sector in developed and developing countries. In this study, the effects of support policies on factor productivity changes of meat during 2012-1991 is studied. The main variables of interest that can be associated with an index of total factor productivity includes single commodity transfers, capital stuck and labor used to produce the product. For this purpose, the Tornquist index (total factor productivity index) determined for this production and SCT (Single Commodity Transfers index) has been calculated during studied period, respectively. Based on the results, the value of the Tornquist index is positive in the period under review. The SCT index indicates government support for meat producers. According to the stationarity and cointegration test results, Johansen cointegration test was used for estimating productivity model. Based on our findings, there isn’t a significant short-run relationship between variables in productivity model. But the long-run relationships for meat is positive and significant. As a result, support policies should be considered by politicians as one of the most important factors affecting the efficiency of the production of this subsection.