Analysis the effects of increasing agricultural production on other sectors and income groups with using structural path analysis approach

The agricultural sector is one of the most important sectors in Iranian economy, whose development and expansion policies can lead to a significant increase in the output of other sectors of the economy. On the other hand, increasing investment in this sector will probably increase incomes of urban and rural groups more than other sectors of the economy.
In this research, using the social accounting matrix of 2011 and using structural path analysis approach, we examine the effects of the development and expansion of agricultural sector on the sectors production and income of the sectors and income groups have been investigated.
The results of this research show that institutionalized production paths reveal a greater degree of global effect of the agricultural sector on other sectors.
On the other hand, the paths that reveal the development and expansion of the agricultural sector on income groups include agriculture, mixed incomes, and compensation for services (labor) and income groups. Also, few routes include operating surplus (capital).
JEL Classification: O18, O2, O38, r28