The induced innovation test (co-integration analysis) of Iranian agriculture

Abstract

Technological change is a determinant index for agriculture that can lead to the productivity growth by either increasing the total output or increasing the usage of relatively cheap inputs and reducing the relatively expensive inputs. The determination of the magnitude and the direction of technological change in agricultural production has attracted much attention and has become the focal point of intense research efforts over the last couple decades. This topic is frequently studied in two different ways. One is considering the efforts of investment in the research and development technological change. The other is explaining the technological change by testing induced innovation hypothesis that was first proposed by Hicks. Therefore, in this study, with the help of time series by using the cointegration analysis, the induced innovation hypothesis is tested and the effect of investment in agricultural research on technological changing is considered.