The objective of this study is to analyze statistically the relationship between governance indicators and agriculture performance, and the quality of institutional interactions between farmers and government in 8 selected countries, including Iran, during the period1996-2006 with especial emphasis on analyzing the trend of some economic policies of agricultural sector in Iran. In general, the results indicated that those countries with higher level of governance have utilized traditional and modern inputs more optimally. In fact, statistical results showed a considerable gap between labor productivity and performance per hectare in countries with different levels of governance. Concentrating on the trend analysis of agricultural sector showed that weakness of governance institutions particularly the participation of people institutions, the quality of regulations, and regulation of legal relations were among the effective factors that impede the achievement of development and significant efficiency in agricultural sector.
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