---

The 2006 census reveals that more than 50% of employed population in Iran is not involved in the production of food, clothing, housing and other tangible goods. Apart from the serious reservation of industrialization in Iran, this can be considered as one of the indications of a new phase shift known as “service economy”. To analyze such a post-industrialization economy, it requires new concepts and classifications which, to our knowledge, have been ignored by researchers mainly in Iran. The main objective of this paper is to measure and identify the domain of the fourth sector and its structural analysis in the framework of input-output and semi-social accounting matrix models. Using 2001 input-output data, the overall results show that the fourth sector appears to be oriented as a consumption goods sector compared to the other sectors. Consequently, the consumption-induced effect ploys a significant role in rising production, income and employment.

---

This paper investigates the effect of reduction in agricultural subsidies in Iran. To this end, the social accounting matrix (SAM) as an analytical model is developed with dimensions of 78 × 78 for the year 2006. Since the amount of subsidies paid to the agriculture sector, based on Total Aggregate Measurement of Support (TAMS), is higher than amount set by the World Trade Organization, hence, in the case of applying for membership of Iran in this organization, Iran should reduce subsidies during a 10-year period, annually by reduction as much as 13600 billion Rials. This paper studies the reduction in agricultural subsidies by 13600 billion Rials. The findings indicate the reduction in gross domestic product (GDP) by more than 57000 billion Rials. One main effect of reduction in agricultural subsidies relates to reduction in output and employment, in such a way this shock results in reducing number of agricultural employees by 86000 people. 

---

Capital as the engine of economic growth and development is one of the fundamental pillars of economy. Many developing countries are struggling to achieve sustainable economic growth through investment in order to achieve economic development. Investing in agricultural sector, due to the steady increase in demand for food and other agricultural products, is of particular importance and can lead to growth in production and employment in this sector. In addition, backward and forward relationships of the agricultural sector with other sectors also contribute to the growth of production and employment. Accordingly, in the present study, the analysis of the effects of the policy of investment growth in agriculture based on the method of Social Accounting Matrix (SAM) was considered. The effects of applying this policy (including net, open and closed effects) have been analyzed in three scenarios. The results of net effects showed that the incomes of production activities would be increased in each of these scenarios. In addition, due to the implementation of the first scenario, industrial and agricultural sectors, and because of the implementation of the second and third scenarios, the sectors of industries, agriculture, and horticulture had the maximum increase in production. Also, the study of open effects also shows an increase in the income of the factors of production and institutions caused by the application of the above policies. Investigating the closed effects of the package also showed that the overall economy resulting from the above scenarios increases, such that closed effects are much stronger than direct effects. The findings also showed that the closed effects of the aforementioned scenarios on the industries, services, and commerce were more than the agricultural sector itself and its sub-sectors, indicating a strong link between these sectors and the agricultural sector and its sub-sectors.