Identifying the Interaction between Mechanization and Agricultural Employment in the Agriculture Section (Case Study: Khorasan Razavi Province)

Abstract Nowadays, the use of agricultural machines and implements is necessary for development. Therefore, it is necessary to determine the appropriate level of mechanization in different activities of agriculture in order to achieve production, employment, income distribution and environment goals. Furthermore, one of the main concerns in the agricultural sector is the issue of employment in this sector and its degree of influence on changing economic factors. The purpose of this study is to investigate the interaction of mechanization and employment in agricultural sector of Khorasan Razavi province. For this purpose, the model of the system of simultaneous equations of the panel data is used for 19 cities of Khorasan Razavi province during the years of 2012-16. The results of the research show that employment and mechanization have mutual, negative and significant effects on each other, although the mechanization has far more influence on employment. Production, mechanized service units and gross income have a positive and significant effect on agricultural mechanization. On the other hand, the cost of inputs (including seeds, pesticides and chemical and animal fertilizers) and the wages have a negative and significant effect on employment and crop area has a positive and significant effect on it. It is recommended to improve the mechanization situation by establishing and developing agricultural machinery services companies. So, the employment would be increased by employing specialist labor in these companies. Moreover, with supportive payments to reduce production costs and increase gross income, farmers can be persuaded to stay in the countryside, which will increase agricultural employment.