Survey Asymmetric Effects of Energy Price Shock on Cotton Production (in Selective Provinces)

Iran is one of the wide countries which has different weather and agriculture sector is so important in Iran. Cotton is one of the agricultural productions which is used as input in the textile industry and is so important. In this paper, effective factors on Cotton production are estimated according to energy price shocks for five providences as Khorasan Razavi, Khorasan Jonoobi, Fars, and Golestan which has more Cotton production for the period of 2006 to 2013 and use from Panel Data to estimation. To estimate energy price, used from Divisia index and is composed of increased and decreased price with Mork method. Results reveal that increased and decreased effects of energy price have asymmetric effects on Cotton production. The effect of the increase in energy price is more than it's decreasing on Cotton production. Cotton price has a positive effect on Cotton production in our selective providences.