The Role of Location on Exploitation of Agricultural Businesses in Mazandaran Province (Case Study: Agricultural Processing Industry)

Authors

1 Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University. Mazandaran, Iran.

2 Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University, Mazandaran, Iran.

Abstract

Choosing the proper site is essential in constructing units such as agricultural processing industries. In this study, we try to determine the factors affecting the exploitation of the agricultural processing industries and measure the share of location as one of the critical issues in locating research. The 2572 data were collected from the Agricultural Jihad Organization of Mazandaran province. The two-level Logit model was used as the estimation method. The results showed that the variables of cooperative ownership, planned capacity, unit area, industrial parks, and livestock and Horticultural activities harm the exploitation. The variables of capital and fishery activity positively affect exploitation. Also, the construction site explains, on average, 1.2% of the observed deviation, which is not defined by independent variables in the model. The share of the worst and the best location in terms of spatial characteristics are 0.2 and 4.6%. The low percentage of sites in exploitation can be due to the right choice of location by investors or the proximity of the cities of Mazandaran province. Therefore, it is necessary to improve other factors affecting the construction of the Agricultural processing industries in Mazandaran.

Keywords

References

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Iranian Economic Review
Volume 24, Issue 3
September 2020
Pages 793-806

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