Naser Ali Yadollahzadeh Tabari and Motiee Reza
This article estimates the major determinants of labor productivity in the agricultural sector and investigates how effects of Technology and Education have changed labor productivity in the agricultural sector in Iran. The theoretical framework is based on this assumption that the Technical progress is divided to two sections; first section is the specified technical progress and second section is the unspecified technical progress. This study uses annual time series data (1961-2007) and unit root tests and analyze them using Auto Regressive Distributed Lag (ARDL) model by Pesaran et. al. (2001). This co-integration technique accommodates potential structural breaks that could undermine the existence of a long-run relationship between labor productivity in the agricultural and its main determinants. Together the independent variables explained 92% of the variance in the dependent variables. The remaining 8% was due to unidentified variables. In relation to that, we can conclude that explanatory power is high for the equation. It showed that one percent change Technology and Education rate lead to decrease 23% in labor productivity in the agricultural sector. Therefore Technology and Education have positive effects on labor productivity in the agricultural sector and is regarded as an important factor in labor productivity in the agricultural sector in Iran.
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