Investigating the relationship between Good Governance and Agricultural Sector Efficiency in N-11 Countries

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Agricultural Economics,Tarbiat Modares University, Tehran,Iran

2 Associate Professor, Department of Agricultural Economics, Tarbiat Modares University., Tehran, Iran

Abstract

Objective: Governance is a key determinant of economic performance and plays a pivotal role in enhancing the efficiency of productive sectors, including agriculture. This study examines the relationship between governance indicators and agricultural sector efficiency across the N-11 countries (Iran, Pakistan, Egypt, Turkey, Mexico, Nigeria, Indonesia, the Philippines, South Korea, Vietnam, and Bangladesh) from 2010 to 2021.

Methods: In the first stage, agricultural technical efficiency was estimated using the Data Envelopment Analysis (DEA) model. In the second stage, the influence of governance indicators on agricultural efficiency was analyzed through a panel Tobit regression model.

Results: The findings reveal that South Korea, Indonesia, the Philippines, and Vietnam demonstrate the highest levels of efficiency. Moreover, factors such as investment in research and development, agricultural exports, government effectiveness, voice and accountability, and the rule of law exert a positive and statistically significant impact on agricultural efficiency. In contrast, political instability and weak regulatory quality are found to negatively affect efficiency levels.

Conclusions: Based on the results, the development of online monitoring platforms and the reinforcement of agricultural research and development initiatives are proposed as strategic priorities. Specifically for Iran, it is recommended to optimize water resource management, implement advanced smart irrigation systems, enhance export infrastructure, and pursue bilateral trade agreements in order to improve agricultural productivity and profitability.

Keywords


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