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Economy and Food Security 2026, 1(1): 68-79 |
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Asadpour Kordi M, Rajabalinejad A, Kaviani Darani M. (2026). The Effect of Knowledge-Based Economy Indicators on Employment in the Agricultural Sector (Case Study: OPEC Member Countries). Economy and Food Security. 1(1), 68-79. doi:10.61882/efs.2025.52
URL: http://efs.sanru.ac.ir/article-1-52-en.html
URL: http://efs.sanru.ac.ir/article-1-52-en.html
1- Department of Agricultural Economics, Faculty of Agricultural Engineering, Sari University of Agricultural Sciences and Natural Resources, Sari, Iran
2- Department of Agricultural Economy, Karaj Branch, Islamic Azad University, Karaj, Iran
3- Department of Agronomy, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran
2- Department of Agricultural Economy, Karaj Branch, Islamic Azad University, Karaj, Iran
3- Department of Agronomy, Shahr-e-Qods Branch, Islamic Azad University, Tehran, Iran
Abstract: (28 Views)
Extended Abstract
Background: The importance of employment creation in achieving economic and social stability in societies is undeniable and constitutes one of the fundamental pillars of sustainable development. Employment not only serves as the main source of household income but also plays a decisive role in improving overall welfare, reducing poverty, increasing social capital, and strengthening economic cohesion within society. Greater attention by policymakers to employment issues can lead to higher labor productivity, a reduction in economic inequalities, and, ultimately, the achievement of comprehensive and balanced development at the national level. In this context, member countries of the Organization of the Petroleum Exporting Countries (OPEC) hold a special position, as the abundance of natural resources—particularly revenues derived from oil exports—should potentially contribute to strengthening investment, developing infrastructure, and increasing employment-generating capacity in these countries. Nevertheless, the fundamental question remains: why do many oil-exporting countries, despite possessing substantial oil revenues that can be considered an important factor in mobilizing capital and financial resources, fail to achieve sustainable, diversified, and employment-generating economic growth? This situation, which often manifests in the form of phenomena such as oil dependence, the Dutch disease, and weak economic diversification, indicates structural challenges in transforming oil revenues into productive employment opportunities. On the other hand, the contemporary world is witnessing profound and fundamental changes in the economic structures of countries. One of the most important of these transformations is the movement of societies toward a knowledge-based and innovation-driven economy, in which knowledge, technology, and human capital are recognized as the most important factors of production. Within this framework, sustainable development and the enhancement of national competitiveness have become more dependent than ever on the production, dissemination, and application of knowledge. The agricultural sector, as one of the key sectors in employment creation, food security, and rural development, is not exempt from these transformations. Improvements and increases in agricultural productivity are primarily the result of a transition from resource-based and traditional production systems to knowledge-based and technology-oriented production systems. In this regard, the knowledge-based economy calls for the integration of knowledge, innovation, and modern technologies—particularly information and communication technologies (ICT)—into agricultural activities. Information and communication technologies, as powerful and transformative technologies, have the capacity to bring about fundamental changes in agricultural production systems and the food industry. ICT tools and systems, which are a combination of human and machine factors, can play an effective role in increasing productivity by improving access to information, enhancing resource management, reducing production costs, and increasing efficiency. Global experiences show that the introduction of information technology into any field is usually accompanied by higher efficiency, improved production quality, and the expansion of employment opportunities. Accordingly, the knowledge-based economy is one of the key factors in discussions related to employment and can have significant effects on job creation and employment development, particularly in the agricultural sector.
Methods: This research aims to investigate the effects of knowledge-based economy indicators on employment in the agricultural sector of OPEC member countries. The methodology used involves sorting each country based on the raw value of the index and assigning the first rank to the country with the highest value. Four indicators from the World Bank, including economic, educational, innovation, and technology indicators, were used from 2000 to 2019. The fully modified ordinary least squares (FMOLS) method was used for estimation.
Results: Tests for the stationarity of the model variables showed that all variables were non-significant at the level of 1% and significant at the first-order difference level of 1%. The cointegration test, using the method provided by Cao, confirmed the existence of a long-term relationship between employment in the agricultural sector and the other model variables. The FMOLS model estimation showed that, apart from the economic index, the remaining components of the knowledge-based economy had a significant effect on employment in the agricultural sector.
Conclusion: The results of this study indicate that, with the exception of the economic index, the remaining components of the knowledge-based economy have a statistically significant impact on employment in the agricultural sector of the investigated countries. Specifically, the technology and innovation index has a negative effect on agricultural employment, which may indicate the substitution of technology for labor—particularly low-skilled labor—in the short run. In contrast, the education index exhibits a positive and statistically significant effect on employment in the agricultural sector, highlighting the importance of enhancing the level of knowledge, skills, and competencies of the workforce in creating sustainable employment opportunities. These findings suggest that the role of education within the knowledge-based economy, especially in the agricultural sector, is not only complementary to technology but can also mitigate the potential adverse effects of technological progress on employment. A set of policy recommendations can be proposed based on these findings. First, investment in workforce education—particularly technology-oriented training and modern agricultural skill development—should be prioritized within development policies, and such investments should be aligned with the objectives of sustainable development. Second, governments should improve agricultural education standards by creating incentives, enhancing capacities, and retraining teachers at all educational levels, while simultaneously expanding and upgrading educational infrastructure to ensure that the education system is capable of meeting the demands of a knowledge-based economy. Third, strengthening economic stability and growth, together with increased investment in agricultural innovations and appropriate technologies, can contribute to improving employment conditions in the agricultural sector. In this regard, the adoption of policies that promote technologies compatible with local conditions and labor market structures is of particular importance. Fourth, given the positive relationship between registered inventions and innovations and employment, governments are encouraged to provide broader support mechanisms for innovative activities. In this context, knowledge-based firms and academic institutions can play a potential and effective role in increasing employment—particularly knowledge-intensive employment in the agricultural sector—by financing the initial and final stages of invention and the commercialization of innovations.
Background: The importance of employment creation in achieving economic and social stability in societies is undeniable and constitutes one of the fundamental pillars of sustainable development. Employment not only serves as the main source of household income but also plays a decisive role in improving overall welfare, reducing poverty, increasing social capital, and strengthening economic cohesion within society. Greater attention by policymakers to employment issues can lead to higher labor productivity, a reduction in economic inequalities, and, ultimately, the achievement of comprehensive and balanced development at the national level. In this context, member countries of the Organization of the Petroleum Exporting Countries (OPEC) hold a special position, as the abundance of natural resources—particularly revenues derived from oil exports—should potentially contribute to strengthening investment, developing infrastructure, and increasing employment-generating capacity in these countries. Nevertheless, the fundamental question remains: why do many oil-exporting countries, despite possessing substantial oil revenues that can be considered an important factor in mobilizing capital and financial resources, fail to achieve sustainable, diversified, and employment-generating economic growth? This situation, which often manifests in the form of phenomena such as oil dependence, the Dutch disease, and weak economic diversification, indicates structural challenges in transforming oil revenues into productive employment opportunities. On the other hand, the contemporary world is witnessing profound and fundamental changes in the economic structures of countries. One of the most important of these transformations is the movement of societies toward a knowledge-based and innovation-driven economy, in which knowledge, technology, and human capital are recognized as the most important factors of production. Within this framework, sustainable development and the enhancement of national competitiveness have become more dependent than ever on the production, dissemination, and application of knowledge. The agricultural sector, as one of the key sectors in employment creation, food security, and rural development, is not exempt from these transformations. Improvements and increases in agricultural productivity are primarily the result of a transition from resource-based and traditional production systems to knowledge-based and technology-oriented production systems. In this regard, the knowledge-based economy calls for the integration of knowledge, innovation, and modern technologies—particularly information and communication technologies (ICT)—into agricultural activities. Information and communication technologies, as powerful and transformative technologies, have the capacity to bring about fundamental changes in agricultural production systems and the food industry. ICT tools and systems, which are a combination of human and machine factors, can play an effective role in increasing productivity by improving access to information, enhancing resource management, reducing production costs, and increasing efficiency. Global experiences show that the introduction of information technology into any field is usually accompanied by higher efficiency, improved production quality, and the expansion of employment opportunities. Accordingly, the knowledge-based economy is one of the key factors in discussions related to employment and can have significant effects on job creation and employment development, particularly in the agricultural sector.
Methods: This research aims to investigate the effects of knowledge-based economy indicators on employment in the agricultural sector of OPEC member countries. The methodology used involves sorting each country based on the raw value of the index and assigning the first rank to the country with the highest value. Four indicators from the World Bank, including economic, educational, innovation, and technology indicators, were used from 2000 to 2019. The fully modified ordinary least squares (FMOLS) method was used for estimation.
Results: Tests for the stationarity of the model variables showed that all variables were non-significant at the level of 1% and significant at the first-order difference level of 1%. The cointegration test, using the method provided by Cao, confirmed the existence of a long-term relationship between employment in the agricultural sector and the other model variables. The FMOLS model estimation showed that, apart from the economic index, the remaining components of the knowledge-based economy had a significant effect on employment in the agricultural sector.
Conclusion: The results of this study indicate that, with the exception of the economic index, the remaining components of the knowledge-based economy have a statistically significant impact on employment in the agricultural sector of the investigated countries. Specifically, the technology and innovation index has a negative effect on agricultural employment, which may indicate the substitution of technology for labor—particularly low-skilled labor—in the short run. In contrast, the education index exhibits a positive and statistically significant effect on employment in the agricultural sector, highlighting the importance of enhancing the level of knowledge, skills, and competencies of the workforce in creating sustainable employment opportunities. These findings suggest that the role of education within the knowledge-based economy, especially in the agricultural sector, is not only complementary to technology but can also mitigate the potential adverse effects of technological progress on employment. A set of policy recommendations can be proposed based on these findings. First, investment in workforce education—particularly technology-oriented training and modern agricultural skill development—should be prioritized within development policies, and such investments should be aligned with the objectives of sustainable development. Second, governments should improve agricultural education standards by creating incentives, enhancing capacities, and retraining teachers at all educational levels, while simultaneously expanding and upgrading educational infrastructure to ensure that the education system is capable of meeting the demands of a knowledge-based economy. Third, strengthening economic stability and growth, together with increased investment in agricultural innovations and appropriate technologies, can contribute to improving employment conditions in the agricultural sector. In this regard, the adoption of policies that promote technologies compatible with local conditions and labor market structures is of particular importance. Fourth, given the positive relationship between registered inventions and innovations and employment, governments are encouraged to provide broader support mechanisms for innovative activities. In this context, knowledge-based firms and academic institutions can play a potential and effective role in increasing employment—particularly knowledge-intensive employment in the agricultural sector—by financing the initial and final stages of invention and the commercialization of innovations.
Keywords: Agricultural sector employment, Fully Modified Ordinary Least Square (FMOLS), Knowledge-based economy, OPEC countries
Type of Study: Research |
Received: 2025/07/8 | Accepted: 2025/11/15
Received: 2025/07/8 | Accepted: 2025/11/15
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