The Effect of US Sanctions on Key Inputs in Agricultural and Industrial Sectors with Emphasis on Water Resources

The purpose of the sanction on a country is to disrupt its economy. Sanctions affect individual components of the economy. The two most important parts of the economy of each country are agricultural and industrial sectors. The agricultural sector is one of the vital sectors in each country's economy because it plays an important role in food security. The industrial sector is also one of the important sectors in country's economy because it creates significant added value. In this paper, the effect of sanctions on key inputs of agricultural and industrial sectors has been studied. These inputs include the true value of production of agriculture and industry, capital stock industry, agricultural machinery, raw materials industry, employment and water consumption in both economic sectors. To achieve the research objectives, the translog cost function was used. The cost function coefficients and input demand functions were estimated using the iterative seemingly unrelated (ISUR) regression method. The results indicated that sanctions have reduced the use of agricultural machinery and have increased the value of real production and consumption of water in the agricultural sector. In the industry sector, the results showed that sanctions have reduced the import of raw materials and the value of industrial output, as well as it reduced water consumption in this sector. In general, sanctions have saved water in industry and has led to a lack of water saving in agriculture.

کلیدواژه ها:

Agriculture ، Water Demand ، Sanctions ، Industry ، Iterative Seemingly Unrelated Regression