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Foad Eshghi,
Volume 4, Issue 8 (12-2017)
Volume 4, Issue 8 (12-2017)
Abstract
Entrepreneurship is closely linked to the economic and social development of countries, and today it is one of the indicators of development in the developing world. Due to the special role of entrepreneurs in the process of economic growth and development, many governments in developed countries are struggling to maximize the opportunities and exploit research gains that leading a number of people with entrepreneurial characteristics to entrepreneurship education and entrepreneurial activities. The main objective of this study is to investigate the relationship between the share of agriculture and entrepreneurship index. For this reason, entrepreneurship Perceived Opportunity and entrepreneurship Perceived Capabilities were used to examine entrepreneurship and agricultural sector share. For this purpose, the data and data of G20 and Iran during the period of 2008-2017 and Fischer co-integration method have been used. The results of the co-integration study showed that there is a long-term relationship between the agricultural sector's contribution to economic growth and entrepreneurship Perceived Opportunity. Also, the long-term relationship between agricultural sectors contributes to economic growth and entrepreneurship capability is also confirmed. In addition, the existence of a long-term equilibrium relationship between two entrepreneurial indicators, entrepreneurship Perceived Opportunity and entrepreneurship Perceived Capabilities, has also been confirmed. Considering the results obtained in the research on the long-term relationship between agricultural sector's share of entrepreneurship Perceived Opportunity and entrepreneurship Perceived Capabilities and the high share of the country's employees in this section, policymakers should pay attention to the importance of agricultural sector potential in improving entrepreneurial conditions.
Seyed Mojtaba Mojaverian, Foad Eshghie,
Volume 5, Issue 9 (4-2018)
Volume 5, Issue 9 (4-2018)
Abstract
Providing people's feed requirement, raw materials for industry, employment and creating incomes is important; strengthening and developing the agricultural sector has a significant role in consolidating the economic foundations of developing countries; for this reason, the stability and sustainability of agricultural sector growth. For this reason, the stability and sustainability of the agricultural sector are among the main drivers of social stability and economic growth. The purpose of this study is to examine the relationship between the share of agricultural employment with the fear of entrepreneurship in the three categories of high economic growth, sustained economic growth, and unsustainable economic growth. Therefore, the panel data related to fears of failure rates and agricultural employment share in the years of 2008- 2017 for 15 countries and the Panel least squares method were used. The results show that there is an inverse relationship between the share of agricultural employment and the fear of entrepreneurial failure. Investigating the relationship between these three groups showed that there was no significant difference between them. To better understand the environmental factors governing the relationship between industrialization and entrepreneurship, re-sampling should be done. Based on the results, it is suggested that in the conditions of rapid structural changes and in countries with high agricultural share, more government guarantees are needed.
Foad Eshghi, Seyed Mojtaba Mojaverian, Mohammad Mehdi Mardanshahi,
Volume 9, Issue 17 (7-2022)
Volume 9, Issue 17 (7-2022)
Abstract
Extended Abstract
Introduction and Objective: Agriculture is an activity with various risks, including production, trade and financial risks. The instability of the prices of agricultural products as a major problem has always caused concern and distrust of producers and consumers towards the market. Price insurance with price risk coverage, which is the most important market sign and the most important factor in production and sales decisions, is a good way to reduce product price fluctuations in the market. The purpose of this study is to assess the feasibility of price insurance to cover the price risk of farmers in Sari, which reduces the risk of agricultural prices and business stability.
Material and Methods: In this study, using field data and interviews with farmers, Features affecting the acceptance of price insurance such as price insurance flexibility for different products and its varieties, the ability to update premiums based on market day price ,and calculate fair premiums based on the index agreed by the insurer and insurance were investigated. For this purpose, Spearman correlation coefficient and structural equations were used for farmers in Sari.
Results: The results showed that between price insurance and price insurance flexibility variables for different varieties and different products, the ability to update the premium based on the market day price and calculate a fair premium based on the index agreed by the insurer and the insurer there is a positive correlation. Also, the correlation between price insurance and the ability to update premiums based on the market price is greater than other effective factors.
Conclusion: According to the results, the flexibility of price insurance on the acceptance of price insurance for different products and its varieties by farmers, the ability to update price insurance on the acceptance of price insurance by farmers and price insurance on a fair premium based The index agreed by the insurer and the insurer of price insurance has an effect on the acceptance of price insurance by farmers. Therefore, the research hypotheses are confirmed.
Farajollah Fathollahpour Kami, Foad Eshghi , Soleyman Karimi,
Volume 10, Issue 2 (12-2023)
Volume 10, Issue 2 (12-2023)
Abstract
Extended Abstract
Background: Economic growth, while not the sole criterion for economic development, has consistently been regarded as a critical indicator of progress. Its significance often surpasses that of other development indicators. One of the primary manifestations of economic growth is the increase in production levels. In today’s world, productivity is recognized as a key factor influencing the economic conditions of nations. Enhancing productivity not only contributes to an increase in gross domestic product (GDP) but also bolsters the competitiveness of countries, ultimately leading to improved public welfare. This study aims to examine the effectiveness and ranking of productivity barriers within the agricultural and industrial sub-sectors in Mazandaran Province. Understanding the dynamics of productivity is essential for fostering economic development, particularly in regions like Mazandaran, where agriculture plays a vital role. The agricultural sector not only provides food security but also supports livelihoods and contributes to the overall economy. Similarly, the industrial sub-sector is crucial for economic diversification and job creation. Therefore, identifying and addressing the barriers to productivity in these sectors is imperative for enhancing economic performance and ensuring sustainable development.
Methods: To investigate the obstacles and challenges affecting productivity in Mazandaran Province, a survey was conducted during the summer of 2022, resulting in the completion of 65 questionnaires by experts and senior managers from various executive bodies in the province. The questionnaires were designed to gather insights on the perceived barriers to productivity within the agricultural and industrial sectors. To analyze the data and estimate the results, the Analytic Hierarchy Process (AHP) was employed, utilizing Expert Choice software. This method allowed for the systematic ranking of various productivity barriers based on expert opinions. Furthermore, to examine the interrelationships among the relevant criteria and sub-criteria, Structural Equation Modeling (SEM) was applied using Smart PLS software. This dual approach enabled a comprehensive understanding of how different barriers interact and influence each other, providing valuable insights into the complex landscape of productivity challenges.
Results: The analysis yielded normalized weights for the identified criteria, specifically environmental barriers, organizational barriers, and individual barriers. The weights were calculated as follows: environmental barriers received a weight of 1.00, organizational barriers were assigned a weight of 0.966, and individual barriers were given a weight of 0.983. These results indicate that environmental barriers are perceived as the most significant obstacles to productivity, while organizational barriers were viewed as the least impactful. Additionally, factor analysis revealed meaningful relationships among the barriers. Specifically, the hypothesis that environmental barriers influence individual barriers was supported, as was the hypothesis that organizational barriers affect environmental barriers. This suggests a complex interplay between different types of barriers, indicating that addressing one category may have cascading effects on others. The findings from the Analytic Hierarchy Process highlighted specific sub-criteria that emerged as particularly impactful. Among the individual barriers, the low leadership skills of managers were identified as a critical issue. This underscores the importance of effective leadership in driving productivity improvements. In terms of organizational barriers, the lack of a robust performance evaluation system was noted as a significant challenge. Such a system is essential for assessing productivity levels and identifying areas for improvement. Lastly, from the perspective of environmental barriers, the presence of incomplete performance information was highlighted as a major obstacle. Access to accurate and comprehensive data is crucial for informed decision-making and strategic planning.
Conclusion: The results of this study underscore the multifaceted nature of productivity barriers in Mazandaran Province. The Analytic Hierarchy Process indicated that low leadership skills among managers, the absence of an effective performance evaluation system, and incomplete performance information are the most pressing issues affecting productivity. These findings suggest that targeted interventions are necessary to enhance leadership capabilities, establish comprehensive performance evaluation frameworks, and improve access to performance data. Overall, the study reveals that environmental barriers hold the highest importance according to the perspectives of high-ranking officials in organizations across Mazandaran Province. Furthermore, the results of the Structural Equation Modeling analysis reinforce the notion that environmental barriers significantly influence individual barriers, while organizational barriers also play a role in shaping environmental challenges. Addressing these barriers is essential for promoting productivity and, by extension, economic growth in both the agricultural and industrial sectors. Policymakers and stakeholders should prioritize initiatives that enhance leadership training, develop robust performance evaluation systems, and ensure the availability of accurate performance information. By doing so, Mazandaran Province can improve its productivity levels, thereby contributing to broader economic development goals and enhancing the welfare of its citizens. In conclusion, the findings of this research provide a valuable foundation for future studies aimed at exploring productivity challenges in other regions and sectors. Understanding the intricate relationships between various barriers will be crucial for developing effective strategies to foster productivity and drive economic development in a sustainable manner.
Methods: To investigate the obstacles and challenges affecting productivity in Mazandaran Province, a survey was conducted during the summer of 2022, resulting in the completion of 65 questionnaires by experts and senior managers from various executive bodies in the province. The questionnaires were designed to gather insights on the perceived barriers to productivity within the agricultural and industrial sectors. To analyze the data and estimate the results, the Analytic Hierarchy Process (AHP) was employed, utilizing Expert Choice software. This method allowed for the systematic ranking of various productivity barriers based on expert opinions. Furthermore, to examine the interrelationships among the relevant criteria and sub-criteria, Structural Equation Modeling (SEM) was applied using Smart PLS software. This dual approach enabled a comprehensive understanding of how different barriers interact and influence each other, providing valuable insights into the complex landscape of productivity challenges.
Results: The analysis yielded normalized weights for the identified criteria, specifically environmental barriers, organizational barriers, and individual barriers. The weights were calculated as follows: environmental barriers received a weight of 1.00, organizational barriers were assigned a weight of 0.966, and individual barriers were given a weight of 0.983. These results indicate that environmental barriers are perceived as the most significant obstacles to productivity, while organizational barriers were viewed as the least impactful. Additionally, factor analysis revealed meaningful relationships among the barriers. Specifically, the hypothesis that environmental barriers influence individual barriers was supported, as was the hypothesis that organizational barriers affect environmental barriers. This suggests a complex interplay between different types of barriers, indicating that addressing one category may have cascading effects on others. The findings from the Analytic Hierarchy Process highlighted specific sub-criteria that emerged as particularly impactful. Among the individual barriers, the low leadership skills of managers were identified as a critical issue. This underscores the importance of effective leadership in driving productivity improvements. In terms of organizational barriers, the lack of a robust performance evaluation system was noted as a significant challenge. Such a system is essential for assessing productivity levels and identifying areas for improvement. Lastly, from the perspective of environmental barriers, the presence of incomplete performance information was highlighted as a major obstacle. Access to accurate and comprehensive data is crucial for informed decision-making and strategic planning.
Conclusion: The results of this study underscore the multifaceted nature of productivity barriers in Mazandaran Province. The Analytic Hierarchy Process indicated that low leadership skills among managers, the absence of an effective performance evaluation system, and incomplete performance information are the most pressing issues affecting productivity. These findings suggest that targeted interventions are necessary to enhance leadership capabilities, establish comprehensive performance evaluation frameworks, and improve access to performance data. Overall, the study reveals that environmental barriers hold the highest importance according to the perspectives of high-ranking officials in organizations across Mazandaran Province. Furthermore, the results of the Structural Equation Modeling analysis reinforce the notion that environmental barriers significantly influence individual barriers, while organizational barriers also play a role in shaping environmental challenges. Addressing these barriers is essential for promoting productivity and, by extension, economic growth in both the agricultural and industrial sectors. Policymakers and stakeholders should prioritize initiatives that enhance leadership training, develop robust performance evaluation systems, and ensure the availability of accurate performance information. By doing so, Mazandaran Province can improve its productivity levels, thereby contributing to broader economic development goals and enhancing the welfare of its citizens. In conclusion, the findings of this research provide a valuable foundation for future studies aimed at exploring productivity challenges in other regions and sectors. Understanding the intricate relationships between various barriers will be crucial for developing effective strategies to foster productivity and drive economic development in a sustainable manner.
Miss Somayeh Pasandideh, Foad Eshghi, Phd Seyed Mojtaba Mojaverian, Phd Mahsa Taslimi,
Volume 11, Issue 1 (7-2024)
Volume 11, Issue 1 (7-2024)
Abstract
ies, focusing on the success of these new products and the profitability of insurance companies.
Methods: The Choice Experiment method is based on two basic parts, including Lancaster's value theory and Random utility function theory. According to Lancaster, a person benefits from the attributes and characteristics of a product compared to the state where he directly uses the product. Therefore, a change in price leads to a change in the Choice of a set of goods over other goods, which creates a higher cost. The theory of random utility function is the second structural part of the selection test method. Based on this theory, all the components of the utility function that result from people's choices are not directly visible to the researcher. In this research, five attributes, moral hazard, franchise, insurance premium estimate, ability to update insurance premium, and price as the main variables in two levels were considered for investigation. In such a way that the audience has two levels for each of the attributes (has the moral hazard /does not have the moral hazard, has the franchise /does not have the franchise, has the insurance premium estimate /does not have the insurance premium estimates, can update insurance premium /cannot update insurance premium, and the price attribute is up to 3000000 Tomans/up to 3750000 Tomans). To collect the necessary data and information, in February 2024, questionnaires were sent to all active private insurance companies in Mazandaran province, which had experienced experts with more than 3 years of relevant work experience, of which 45 questionnaires were completed. The Choice Experiment was valid. The conditional logit method was used to estimate the model. Hence, to ensure the correct use of the conditional logit method to estimate the model, first, using the Hausman-McFadden test, the hypothesis of independence of irrelevant alternatives (IIA) was examined. For this purpose, first, the model was estimated in an unrestricted form with the presence of all options; Then, by removing one of the options, the model was estimated in a restricted form and according to thex
Results: Based on the obtained results, the value of the chi-square statistic was equal to -1.62, which indicates the confirmation of the null hypothesis and establishing the independence of irrelevant alternatives; Accordingly, conditional logit regression is the most suitable model for investigating the effective attributes of price insurance in its acceptance by insurance companies. According to the results, the sign of the coefficients of the franchise, insurance premium, and price variables is positive and by the theory; Also, the variables of moral hazard and the ability to update have an inverse relationship with the utility of price insurance by insurance companies. The coefficient of the final effect of the moral hazard variable is equal to -0.072, which means that with other variables being constant if the characteristic of a unit's moral hazard increases, the marginal utility or willingness to pay insurers will decrease by 0.072 units. The value of the final effect of the insurance premium variable is 0.098, which states that if the premium attribute increases one unit, in a situation where other attributes are constant, the willingness to pay or the marginal utility of the insurers increases by 0.098 units.
Conclusion: Accordingly, the sign of the coefficients of the franchise, insurance premium calculation, and price variables is positive and according to the theory. Also, variables of moral hazard and the ability to update insurance premiums have an inverse relationship with the utility of price insurance by insurers. The effect of the attributes of price insurance is the highest in the form of franchise, insurance premium calculation, moral hazard, and the ability to update insurance premiums. Also, considering that 70% of insurance companies' experts welcome price insurance, including it in the insurance portfolio offered by insurance companies can improve the profitability of insurance companies and on the other hand, improve the business environment related to agriculture if the insurance premium is determined and strengthen food security. By developing price insurance, the policymaker can compensate to a large extent the current damage caused by insurance of agricultural products.
Methods: The Choice Experiment method is based on two basic parts, including Lancaster's value theory and Random utility function theory. According to Lancaster, a person benefits from the attributes and characteristics of a product compared to the state where he directly uses the product. Therefore, a change in price leads to a change in the Choice of a set of goods over other goods, which creates a higher cost. The theory of random utility function is the second structural part of the selection test method. Based on this theory, all the components of the utility function that result from people's choices are not directly visible to the researcher. In this research, five attributes, moral hazard, franchise, insurance premium estimate, ability to update insurance premium, and price as the main variables in two levels were considered for investigation. In such a way that the audience has two levels for each of the attributes (has the moral hazard /does not have the moral hazard, has the franchise /does not have the franchise, has the insurance premium estimate /does not have the insurance premium estimates, can update insurance premium /cannot update insurance premium, and the price attribute is up to 3000000 Tomans/up to 3750000 Tomans). To collect the necessary data and information, in February 2024, questionnaires were sent to all active private insurance companies in Mazandaran province, which had experienced experts with more than 3 years of relevant work experience, of which 45 questionnaires were completed. The Choice Experiment was valid. The conditional logit method was used to estimate the model. Hence, to ensure the correct use of the conditional logit method to estimate the model, first, using the Hausman-McFadden test, the hypothesis of independence of irrelevant alternatives (IIA) was examined. For this purpose, first, the model was estimated in an unrestricted form with the presence of all options; Then, by removing one of the options, the model was estimated in a restricted form and according to the
Results: Based on the obtained results, the value of the chi-square statistic was equal to -1.62, which indicates the confirmation of the null hypothesis and establishing the independence of irrelevant alternatives; Accordingly, conditional logit regression is the most suitable model for investigating the effective attributes of price insurance in its acceptance by insurance companies. According to the results, the sign of the coefficients of the franchise, insurance premium, and price variables is positive and by the theory; Also, the variables of moral hazard and the ability to update have an inverse relationship with the utility of price insurance by insurance companies. The coefficient of the final effect of the moral hazard variable is equal to -0.072, which means that with other variables being constant if the characteristic of a unit's moral hazard increases, the marginal utility or willingness to pay insurers will decrease by 0.072 units. The value of the final effect of the insurance premium variable is 0.098, which states that if the premium attribute increases one unit, in a situation where other attributes are constant, the willingness to pay or the marginal utility of the insurers increases by 0.098 units.
Conclusion: Accordingly, the sign of the coefficients of the franchise, insurance premium calculation, and price variables is positive and according to the theory. Also, variables of moral hazard and the ability to update insurance premiums have an inverse relationship with the utility of price insurance by insurers. The effect of the attributes of price insurance is the highest in the form of franchise, insurance premium calculation, moral hazard, and the ability to update insurance premiums. Also, considering that 70% of insurance companies' experts welcome price insurance, including it in the insurance portfolio offered by insurance companies can improve the profitability of insurance companies and on the other hand, improve the business environment related to agriculture if the insurance premium is determined and strengthen food security. By developing price insurance, the policymaker can compensate to a large extent the current damage caused by insurance of agricultural products.
Maryam Asadpourkordi, Hamid Amirnejad, Foad Eshghi,
Volume 11, Issue 2 (8-2024)
Volume 11, Issue 2 (8-2024)
Abstract
Extended Abstract
Background: Knowledge-based economy is not only a new theoretical concept but also a new era that is fundamentally different from the era of agricultural and industrial economy. The development process of the knowledge-based economy is the formation of a knowledge-based economy, which will mean the beginning of a new stage in the development of the global economy. Nowadays, the economy based on knowledge and entrepreneurship is one of the important issues for the growth and development of various economic sectors of the world, in which the agricultural sector, similar to other economic sectors, requires the use of knowledge, innovation, and technology for growth and development. In the new models of agricultural development, knowledge and technology have an important place in the growth and development of sustainable agriculture, and these models are referred to as scientific agriculture, agriculture based on knowledge and technology, and knowledge agriculture. In other words, it means the development of the agricultural knowledge base, knowledge management, technology, and innovation in agriculture. Therefore, the role of knowledge in the agricultural development process has nowadays gained significant importance. Currently, knowledge and information, such as land, capital, and labor, are the main factors of production in the agricultural sector, and therefore, the access of farmers to modern knowledge in agriculture plays an essential role in agricultural and rural development. Therefore, this research aims to investigate the effect of knowledge-based economy indicators on the added value of the agricultural sector of the D8 member countries (including Iran, Bangladesh, Turkey, Malaysia, Egypt, Indonesia, Pakistan, and Nigeria).
Methods: In general, the indicators of knowledge economy can be divided into two categories. The first category focuses on the basic characteristics of the knowledge-based economy, and these indicators describe the share of the knowledge-based economy in the overall economy of the country. For example, the proportion of people working in high-tech industries, or the proportion of people with higher education who make universities powerful centers that consolidate strong intellectual capital and produce new knowledge and technological innovations in their research activities. The second largest group consists of the so-called performance or output indicators, which include the production of high-tech industries, high-tech exports, GDP growth, and labor productivity growth. There are several approaches to classifying the knowledge-based economy indicators, among which the World Bank, instead of indicators based on the knowledge-based economy characteristics, argues the pillars of the knowledge-based economy, and these four pillars are the economic and institutional regime, education and human resources, information and communication infrastructure, and the innovation system. In this research, the indicators of the knowledge-based economy for 8 D8 member countries were prepared using the model introduced by the World Bank, which is a complete and common model, during 2000-2019. All study data, including economic growth, regulatory quality, and corruption control for the institutional regime and economic motivation, scientific journal articles, patent applications for the innovation system, internet users and mobile phone users for information and communication technology, registration rate in the second academic year, and the enrollment rate in the third year, the guidelines for training and development of human resources were obtained from the World Bank website. The PANEL ARDL method was used to estimate the model.
Results: Before estimating the model, four economic indicators, innovation, education, and information technology of Islamic developing countries were calculated during the reviewed period. The results of index calculations showed that among the D8 countries, Iran ranked first in the innovation index, second in the education index, third in the technology index, and seventh in the economic index. The results of this research showed that in the long term, all four indicators of the knowledge-based economy had a positive and significant effect on the added value of the agricultural sector of the D8 countries. In the short term, however, there were no relationships between the indicators of the knowledge-based economy and the added value of the agricultural sector. In other words, the effect of the knowledge-based economy components on the added value of the agricultural sector is a long-term process and will be observed in the long term. Among the indices, the education and human development index has had a greater effect on the added value of the agricultural sector according to the elasticity in the long term, showing greater importance of this index on the growth and development of agriculture.
Conclusion: According to the results, although the effects of knowledge-based indicators are not significant in the short term, they have a positive and significant effect on the added value of the agricultural sector in the long term, which shows the importance of knowledge-based economy in the future of the agricultural development of countries. Therefore, attention and investment in education, technology, innovation, and economic growth can ultimately increase the growth and development of the agricultural sector. This is because the productivity of production factors has improved with the use of institutional and technical innovations and the development of education. It leads to the growth of production in the agricultural sector, thus it is recommended to take an effective action in this field by investing more and improving the quality of educational centers in the studied countries. Finally, considering that agriculture has a direct relationship with the indicators of the knowledge-based economy, researchers should provide their scientific and research achievements to farmers and agricultural sector operators to increase and improve the efficiency of the agricultural sector
Background: Knowledge-based economy is not only a new theoretical concept but also a new era that is fundamentally different from the era of agricultural and industrial economy. The development process of the knowledge-based economy is the formation of a knowledge-based economy, which will mean the beginning of a new stage in the development of the global economy. Nowadays, the economy based on knowledge and entrepreneurship is one of the important issues for the growth and development of various economic sectors of the world, in which the agricultural sector, similar to other economic sectors, requires the use of knowledge, innovation, and technology for growth and development. In the new models of agricultural development, knowledge and technology have an important place in the growth and development of sustainable agriculture, and these models are referred to as scientific agriculture, agriculture based on knowledge and technology, and knowledge agriculture. In other words, it means the development of the agricultural knowledge base, knowledge management, technology, and innovation in agriculture. Therefore, the role of knowledge in the agricultural development process has nowadays gained significant importance. Currently, knowledge and information, such as land, capital, and labor, are the main factors of production in the agricultural sector, and therefore, the access of farmers to modern knowledge in agriculture plays an essential role in agricultural and rural development. Therefore, this research aims to investigate the effect of knowledge-based economy indicators on the added value of the agricultural sector of the D8 member countries (including Iran, Bangladesh, Turkey, Malaysia, Egypt, Indonesia, Pakistan, and Nigeria).
Methods: In general, the indicators of knowledge economy can be divided into two categories. The first category focuses on the basic characteristics of the knowledge-based economy, and these indicators describe the share of the knowledge-based economy in the overall economy of the country. For example, the proportion of people working in high-tech industries, or the proportion of people with higher education who make universities powerful centers that consolidate strong intellectual capital and produce new knowledge and technological innovations in their research activities. The second largest group consists of the so-called performance or output indicators, which include the production of high-tech industries, high-tech exports, GDP growth, and labor productivity growth. There are several approaches to classifying the knowledge-based economy indicators, among which the World Bank, instead of indicators based on the knowledge-based economy characteristics, argues the pillars of the knowledge-based economy, and these four pillars are the economic and institutional regime, education and human resources, information and communication infrastructure, and the innovation system. In this research, the indicators of the knowledge-based economy for 8 D8 member countries were prepared using the model introduced by the World Bank, which is a complete and common model, during 2000-2019. All study data, including economic growth, regulatory quality, and corruption control for the institutional regime and economic motivation, scientific journal articles, patent applications for the innovation system, internet users and mobile phone users for information and communication technology, registration rate in the second academic year, and the enrollment rate in the third year, the guidelines for training and development of human resources were obtained from the World Bank website. The PANEL ARDL method was used to estimate the model.
Results: Before estimating the model, four economic indicators, innovation, education, and information technology of Islamic developing countries were calculated during the reviewed period. The results of index calculations showed that among the D8 countries, Iran ranked first in the innovation index, second in the education index, third in the technology index, and seventh in the economic index. The results of this research showed that in the long term, all four indicators of the knowledge-based economy had a positive and significant effect on the added value of the agricultural sector of the D8 countries. In the short term, however, there were no relationships between the indicators of the knowledge-based economy and the added value of the agricultural sector. In other words, the effect of the knowledge-based economy components on the added value of the agricultural sector is a long-term process and will be observed in the long term. Among the indices, the education and human development index has had a greater effect on the added value of the agricultural sector according to the elasticity in the long term, showing greater importance of this index on the growth and development of agriculture.
Conclusion: According to the results, although the effects of knowledge-based indicators are not significant in the short term, they have a positive and significant effect on the added value of the agricultural sector in the long term, which shows the importance of knowledge-based economy in the future of the agricultural development of countries. Therefore, attention and investment in education, technology, innovation, and economic growth can ultimately increase the growth and development of the agricultural sector. This is because the productivity of production factors has improved with the use of institutional and technical innovations and the development of education. It leads to the growth of production in the agricultural sector, thus it is recommended to take an effective action in this field by investing more and improving the quality of educational centers in the studied countries. Finally, considering that agriculture has a direct relationship with the indicators of the knowledge-based economy, researchers should provide their scientific and research achievements to farmers and agricultural sector operators to increase and improve the efficiency of the agricultural sector
Ali Rasouli, Seyed Mojtaba Mojavarian, Foad Eshghi, Somayeh Shirzadi,
Volume 11, Issue 2 (8-2024)
Volume 11, Issue 2 (8-2024)
Abstract
Extended Abstract
Background: The success or failure of a company is influenced by internal and external factors. The three management components, including the conduct within the organization, the market structure, and the performance of the company, cannot be considered separately from each other. The performance of companies in every industry is influenced by their conduct. On the other hand, the market structure affects both performance and conduct, but the market structure itself is also dependent on the behavior of companies with each other. In this regard, the number of employees and the creation of new businesses strongly depend on the type and intensity of the relationship between these three components. There are three management theories based on the posterior or anterior effects: the theory of structuralisms who believe that the direction of causality is from the structure to conduct and then to performance. In fact, the behavior of companies and their decision based on cooperation, alliance, or competition with each other is affected by the market structure. The structure and behavior of companies in the market collectively shape the market performance of companies. The Chicago theory is the opposite. Contrary to the opinion of structuralisms, they consider the direction of causality from market performance, which is reflected in efficiency, technical progress, profitability rate, amount of production, sales, export, and employment to other elements of the market. In the third theory, the behavior of companies is considered the principle. They consider the behavior pattern of companies as an effective factor in the formation of market performance. Accordingly, the structure is not very effective in the market performance, but the behavior of companies is the basic element that determines the performance. This study aims to measure the effect of employment on the financial performance of sugar companies and to identify the structure-behavior and performance paradigm.
Methods: The information on eight sugar-producing factories, whose shares are bought and sold in the Tehran Stock Market, was collected over four years (2018-2021). According to the available data, Herfindahl index variables, research and development cost, and gross profit were used to measure the components of structure, conduct, and performance, respectively. The variables needed to form the applied models were calculated using the financial statements of sugar factories in different provinces of Iran. The type of ownership of the company, the share of government ownership, and the number of labor forces were used as exogenous variables of the model. The variables were modeled in a panel simultaneous equations system. System estimators (Full Information Maximum Likelihood: FIML) were used to estimate the parameters of the simultaneous equations system.
Results: The results showed that about 1100 workers were active in the production sector of these factories. Among different industries, the sugar industry was relatively labor intensive. On average, the government's share in providing capital was about 40%. However, this is not a suitable criterion for the management role of the private sector because the government periodically assigns tasks to these units. Based on the estimation results, the market structure effect on the conduct was statistically significant, but it did not significantly affect its performance. Moreover, the conduct impact of the company had a significant and positive effect on both the structure and the performance. Performance also showed a positive and significant impact on both components of the industry structure and company conduct. Examining the effect of exogenous variables is also considerable. Companies where the government has more share in financing leave a negative impact on the structure. The relationship between sales value and R&D expenditure became negative, which could be caused by the lack of need for companies in times when their sales are high. Another justification for this result can be the low marketing margin due to the government's price interventions in this industry. The estimation of the effect coefficient of the sales value on gross profit is positive but small. Based on the obtained results, the workforce has not been able to have a significant effect on the company's performance. Although it shows a positive effect on average, this effect is not statistically significant.
Conclusion: The results showed that the performance of the companies differed greatly from each other, but small companies were more successful on average. Each sugar factory has 136 workers on average, although this record cannot be valid due to the seasonal nature of the activity. One of the results of the study is no impact of the labor force on performance from a statistical point of view. Although this input in this industry has not entered the third stage of production and the inverse relationship with production, its effect was not significant on performance. The amount of effects between the three components of structure, conduct, and performance were determined by measuring the average elasticities, and therefore, the theory of structuralisms is closer to the conditions of the Iranian sugar market. According to all the results, it is suggested to reduce government interventions to allow for activating the market mechanism. According to the results of the research, it can be expected that the reduction of government interventions will have a positive effect on the behavior and performance of companies in the long term. Firstly, the use of other indicators that have the ability to explain behavior, performance, and structure, secondly, the estimation of the model in a non-linear way, and thirdly, the use of composite indicators made based on the opinions of experts, which are a better representative of the prevailing situation in Iran's sugar industry, are suggested for future studies.
Background: The success or failure of a company is influenced by internal and external factors. The three management components, including the conduct within the organization, the market structure, and the performance of the company, cannot be considered separately from each other. The performance of companies in every industry is influenced by their conduct. On the other hand, the market structure affects both performance and conduct, but the market structure itself is also dependent on the behavior of companies with each other. In this regard, the number of employees and the creation of new businesses strongly depend on the type and intensity of the relationship between these three components. There are three management theories based on the posterior or anterior effects: the theory of structuralisms who believe that the direction of causality is from the structure to conduct and then to performance. In fact, the behavior of companies and their decision based on cooperation, alliance, or competition with each other is affected by the market structure. The structure and behavior of companies in the market collectively shape the market performance of companies. The Chicago theory is the opposite. Contrary to the opinion of structuralisms, they consider the direction of causality from market performance, which is reflected in efficiency, technical progress, profitability rate, amount of production, sales, export, and employment to other elements of the market. In the third theory, the behavior of companies is considered the principle. They consider the behavior pattern of companies as an effective factor in the formation of market performance. Accordingly, the structure is not very effective in the market performance, but the behavior of companies is the basic element that determines the performance. This study aims to measure the effect of employment on the financial performance of sugar companies and to identify the structure-behavior and performance paradigm.
Methods: The information on eight sugar-producing factories, whose shares are bought and sold in the Tehran Stock Market, was collected over four years (2018-2021). According to the available data, Herfindahl index variables, research and development cost, and gross profit were used to measure the components of structure, conduct, and performance, respectively. The variables needed to form the applied models were calculated using the financial statements of sugar factories in different provinces of Iran. The type of ownership of the company, the share of government ownership, and the number of labor forces were used as exogenous variables of the model. The variables were modeled in a panel simultaneous equations system. System estimators (Full Information Maximum Likelihood: FIML) were used to estimate the parameters of the simultaneous equations system.
Results: The results showed that about 1100 workers were active in the production sector of these factories. Among different industries, the sugar industry was relatively labor intensive. On average, the government's share in providing capital was about 40%. However, this is not a suitable criterion for the management role of the private sector because the government periodically assigns tasks to these units. Based on the estimation results, the market structure effect on the conduct was statistically significant, but it did not significantly affect its performance. Moreover, the conduct impact of the company had a significant and positive effect on both the structure and the performance. Performance also showed a positive and significant impact on both components of the industry structure and company conduct. Examining the effect of exogenous variables is also considerable. Companies where the government has more share in financing leave a negative impact on the structure. The relationship between sales value and R&D expenditure became negative, which could be caused by the lack of need for companies in times when their sales are high. Another justification for this result can be the low marketing margin due to the government's price interventions in this industry. The estimation of the effect coefficient of the sales value on gross profit is positive but small. Based on the obtained results, the workforce has not been able to have a significant effect on the company's performance. Although it shows a positive effect on average, this effect is not statistically significant.
Conclusion: The results showed that the performance of the companies differed greatly from each other, but small companies were more successful on average. Each sugar factory has 136 workers on average, although this record cannot be valid due to the seasonal nature of the activity. One of the results of the study is no impact of the labor force on performance from a statistical point of view. Although this input in this industry has not entered the third stage of production and the inverse relationship with production, its effect was not significant on performance. The amount of effects between the three components of structure, conduct, and performance were determined by measuring the average elasticities, and therefore, the theory of structuralisms is closer to the conditions of the Iranian sugar market. According to all the results, it is suggested to reduce government interventions to allow for activating the market mechanism. According to the results of the research, it can be expected that the reduction of government interventions will have a positive effect on the behavior and performance of companies in the long term. Firstly, the use of other indicators that have the ability to explain behavior, performance, and structure, secondly, the estimation of the model in a non-linear way, and thirdly, the use of composite indicators made based on the opinions of experts, which are a better representative of the prevailing situation in Iran's sugar industry, are suggested for future studies.
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