Explaining the Actual Position of Agriculture in the National Economy with Focusing on Value Added of Agribusiness

Calculation of macroeconomic indicators for the agricultural sector in the System of National Accounts cannot represent the actual position of the sector in national economy. In this study the actual position of the agricultural sector through the calculation of its direct and indirect effects on the national economy of Iran was estimated using time series of 1991-2014. The results of this study showed that due to agriculture share in GDP (7 percent) and the its weighted contribution to economic growth (2.68 percent) in the economic growth of the country (3.08 percent), in terms of direct impact on the national economy, agriculture located in third place after industries and service groups. Indirect effect of agriculture in the national economy according to value added of backward and forward activities of agriculture is estimated 16 percent of GDP and based on value added of forward industries related to agriculture is calculated 3.1 percent of GDP. The total share of agricultural value added based on constant prices between 2004-2014 has been about 22.5 percent of the country's GDP directly and indirectly (total effect). According to the real position of the agricultural sector in the formulation of policies related to the country's development programs, it is suggested that estimating the annual employment, exports and value added of agricultural business as indirect effective indicators of agriculture in national economy should be considered by responsible institutions of economic statistics as a national statistical plan.