Safdari Mehdi
This paper analyses the determinants of agricultural labor flows and the role of human capital in this process on the basis of the agricultural value added. The theoretical framework was designed based on this assumption that the total agricultural value added in the economy is divided into two sections, production for inside and production for export. The data were collected from 1971 to 2007 and was analyzed using Auto Regressive Distributed Lag (ARDL) model. The result of the analyses shows that there is significant relationship between human capital and agricultural value added growth. Together, the independent variables explained 92% of the variance in the dependent variables. In relation to that, it is concluded that explanatory power is high for the equation that shows that one percent change in human capital rate lead to 34% in agricultural value added growth. Therefore, a human capital is regarded as an important factor in Iran's agricultural value added.
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