Evaluating the Influences of Drought Losses on the Production of Agriculture Sector Taslimi Mahsa1, Norouzi Ghasem2 1M.s.c. student, Agricultural Economics, Islamic Azad University, Qaemshahr Branch 2 Department of Agricultural Economics, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran Online published on 6 September, 2014. Abstract Iran is located in semi-arid regions and faces many drought, Farmers and animal husbandries are suffered great losses each year due to drought, with sudden rains, flood, plant pests, and other natural disasters. Therefore, farmers are discouraged to invest more in the recent years. This paper investigated the damages caused by drought on agricultural production by using auto regressive distributed lags (ARDL) methods during 1981–2009. The results suggest that damage caused by the drought had a negative impact on agricultural production and somewhat have been able to neutralize the effects of investment in this sector. Therefore, to increase production, in addition to investment capital expanding, crop and revenue insurance have been also recommended. Top Keywords Insurance, agricultural sector, drought, auto regressive distributed lags (ARDL), production. Top |