Examination the Impact of Public Infrastructure Investment in Iranian Agriculture Sector on Agriculture Productivity Growth

In Iran, agriculture is the largest production sector after oil and services that has allocated around 20 present of Gross national product and main share of non oil export to it. Moreover it is a location for employment of large number of country population. So growth of this sector can determine country growth notably. Infrastructure investment is one of the factors that can increase productivity in agriculture by increasing labor, capital and other inputs performance. This study surveys effects of public infrastructure investment on agricultural productivity growth in Iran for period 1350- 1382 and for this purpose, uses government’s development expenditures in agricultural sector as a proxy of agricultural infrastructural investment. In this research, the dual manner and Translog cost function has used. These models were estimated through the Seemingly Unrelated Regression System and the Maximum Entropy models. Estimating of cost elasticity respect to infrastructure investment indicate on the negative and significant effect of infrastructure investment on production cost in agriculture sector. Moreover, result of productivity growth’s decomposition to scale, technical, infrastructure and human investment effects, showed that after technical change, public infrastructure investment is the most important factor in increasing of agricultural productivity growth.