AN ECONOMIC ANALYSIS FOR THE FACTORES EFFECTING ON NET FARM INCOME USING PANEL DATA

Abstract

The aim of this research is studying the affecting factors in net farm income via using panel data models .To achieving requirements of the study we collected the data randomly from 41 farmers in al-maden district – province of Baghdad.To all production activities in farm in 2015 and 2016. We used eviews 6 program and GLS method, we used OLS to estimate three models were net agricultural income was dependent variable and each of the area, costs, value of animal production and value of assets were independent variables, according to LM test and hausman test, the random effects model was the best of the estimating models which confirm that increasing the assets, area and cost by 1% will increase net agricultural income by (0.049, 0.227, 0.552 )% respectively. While the farm size entire as a dummy variable in the random effects model indicates that net agricultural income will increase 1.035 when increase this size by one unit. The research concluded that the results of estimation in panel data were more accurate and degree of freedom were more than using one models. The research recommended to intensive the suitable technological factors and providing the required financing and recycling part income to invest it in farming assets.