Impacts of Agricultural Research Expenditures on Rural Poverty in Iran

Considering the importance of agricultural research on economic rate of return and the decline of rural poverty, this study is carried out to determine the effects of agricultural research on rural poverty. The study applies three-stage least square method to estimate system of equations for rural poverty, food prices, farming, horticulture and livestock value added for 1971-2009 time series data. The results of estimation indicate positive effects of research expenditures and the stock of agricultural capital on farming, horticulture and livestock value added, while labor force has a negative effect on farming, horticulture and livestock value added. There is a negative relationship between food prices and farming, horticulture and livestock value added. Gini coefficient and food prices have direct impact and the income of rural house has an indirect effect on absolute rural poverty. Considering the serial influence of these variables it can be concluded that a negative relationship exists between agricultural research expenditures and absolute rural poverty.