The Impact of Research and Development (R&D) Expenditures on the Value Added in the Agricultural Sector of Iran

TL;DR

This study analyzes the positive impact of R&D expenditures on Iran's agricultural sector value added from 1971 to 2021, using ARDL modeling to quantify short and long-term effects.

Contribution

It provides empirical evidence of R&D's significant positive influence on agricultural value added in Iran, with specific elasticity estimates for short and long-term impacts.

Findings

R&D expenditures significantly increase agricultural value added.

Short-term elasticity of R&D is 0.45; long-term is 0.35.

Other factors like capital and employment also positively affect value added.

Abstract

In this study, the impact of research and development (R&D) expenditures on the value added of the agricultural sector in Iran was investigated for the period 1971-2021. For data analysis, the researchers utilized the ARDL econometric model and EViews software. The results indicated that R&D expenditures, both in the short and long run, have a significant positive effect on the value added in the agricultural sector. The estimated elasticity coefficient for R&D expenditures in the short run was 0.45 and in the long run was 0.35, indicating that with a 1 percent increase in research and development expenditures, the value added in the agricultural sector would increase by 0.45 percent in the short run and by 0.35 percent in the long run. Moreover, variables such as capital stock, number of employees in the agricultural sector, and working days also had a significant and positive effect on the value added in the agricultural sector.