Study of mechanical technology impact on poultry industry: mathematical and econometrics analyses

In this paper sources of output growth in poultry meat production are decomposed in Sabzevar city using new technology (mechanical technology). It is based on cross-section data collected in 2008 from poultries sample including 45 observations. At first, a dummy variable is defined as technology term in the pooled production function. Afterwards, the output decomposition model (as developed by Biasaliah, 1977) is used to decompose the difference in the poultry meat output between old and new meat production technologies into technical change and change in quantities of inputs. The results show that the estimated growth in meat output was 214 percent of which 63 percent was contributed by technology and consequently 151 percent was contributed by increasing level of inputs in which food, fuel and labor share 95, 27 and 29 percent respectively. So, investment in mechanical technology researches seems to be essential. Since innovations are mostly introduced by cooperatives in the region, this paper urges improvement of cooperatives role for extension, advertisement and credit provision to poulterers in order to use new technology efficiently.