CONCEPTS AND MEASUREMENT OF AGRICULTURAL SURPLUS - A NEW ACCOUNTING FRAMEWORK WITH APPLICATION TO IRAN

A new accounting framework for the measurement of intersectoral resour ce flows is presented. Different definitions of agricultural surplus a re discussed and the conceptual and measurement problems involved in e mpirical estimation are examined. The framework is used to obtain new estimates of net agricultural surplus from the financial side for Iran . These estimates confirm the results of earlier partial studies, that there was a large and growing net inflow of resources into Iranian ag riculture during the 1963-77 period. A comparison is made with the exp erience of Taiwan, and it is concluded that the problems of Iranian ag riculture resulted from inefficient resource use within the sector rat her than a resource squeeze from agriculture.