Effects of Knowledge Factors on Supply of Agricultural Exports of Iran

Given the importance of exports and to reduce dependence on oil revenues, a careful examination of the determinants of supply of agricultural exports is crucial. The present study evaluate the effect of accumulation of domestic research and development (R&D) investment, business partners R&D spillovers, accumulation of promotion and education investments, and human capital over the period 1971-2013 on supply of agricultural exports. Results indicate a significant positive effect of the accumulation of domestic R&D investment, accumulation of promotion and education investments, trading partners R&D spillovers, intensity of physical capital in agriculture and real exchange rate on supply of agricultural exports. While the estimated coefficients of human capital variables on supply of agricultural exports is not significant.