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Economy and Food Security 2026, 1(1): 129-136 |
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(2026). The Effect of Time Rent on the Completion of Construction Projects: A Case Study of Agricultural Conversion and Complementary Industries in Mazandaran Province. Economy and Food Security. 1(1), 129-136. doi:10.61882/efs.2025.39
URL: http://efs.sanru.ac.ir/article-1-39-en.html
URL: http://efs.sanru.ac.ir/article-1-39-en.html
Abstract: (1072 Views)
Extended Abstract
Background: The establishment of agricultural industries—particularly agro-processing and complementary industries—in rural areas plays a highly significant role in the sustainable development of villages. By creating new employment opportunities, increasing rural household incomes, and improving overall economic welfare, these industries can effectively reduce the migration of rural labor to urban areas. Uncontrolled rural-to-urban migration, in addition to generating social and economic problems in cities, leads to the weakening of the agricultural sector and a decline in domestic production. Therefore, developing agro-processing industries in close proximity to farms and agricultural production units can greatly contribute to retaining the rural population and strengthening the economic foundations of rural regions. Moreover, the presence of agro-processing industries reduces post-harvest losses, improves storage and packaging processes, facilitates transportation, extends the shelf life of products, and creates value-added for raw agricultural outputs. These industries also promote the development of the service sector, improve infrastructure, enhance technological levels in rural areas, and strengthen the linkage between agriculture and industry. Consequently, it is of particular importance to examine the challenges and obstacles in the establishment and development of these industries. One of the most critical stages in the development of agro-processing industries is the construction and commissioning phase of industrial units. Investor behavior at this stage and the constraints they face can play a decisive role in the success or failure of projects. Prolonged construction periods not only increase overhead and financial costs but may also pave the way for competitors to enter the market, lead to the loss of target markets, reduce competitiveness, and result in technological backwardness. In other words, the longer the construction period of an industrial unit, the greater the impact of inflation and economic fluctuations on project costs, thereby seriously challenging its economic feasibility. Therefore, identifying and analyzing factors affecting the construction duration of agro-processing and complementary agricultural industries is both necessary and unavoidable. This study mainly aims to investigate these factors and provide empirical evidence to improve policymaking in this field.
Methods: This study utilizes data from 1,290 active agro-processing units in Mazandaran Province in 2019. A hierarchical linear model was employed to identify factors affecting the construction duration of these units. Due to its ability to disentangle effects at different levels, this model allows for a more precise analysis of the roles of individual-level and time-related factors. Accordingly, the studied units were categorized based on their year of construction commencement. The start year of construction, as the basis for temporal classification, was chosen to account for the economic, institutional, and environmental conditions faced by economic agents in different periods. These conditions include policy changes, economic fluctuations, inflation rates, access to financial resources, and market conditions, all of which can influence the duration of project construction.
Results: The results of the two-level hierarchical model show that the type of ownership, the location of establishment, and the type of activity, along with the time factor, have an effect on the construction duration of conversion industries. Private ownership has a negative effect on the construction duration of transformation industries in Mazandaran Province, and these units are put into operation faster than joint-stock and cooperative units. Moreover, if the new units are in the agricultural group, they will be put into operation 15 and 8.5 months earlier than garden and livestock activities, respectively. In addition, if a conversion unit is to be built in industrial towns, the duration of its construction is 0.84 years (10 months) longer than that of other units, and the units located in other areas reach the operational stage sooner. The time factor also explains, on average, 38% of the changes in the duration of completing the units. The minimum and maximum effects of this variable are, respectively, 25 and 46%, which are significant.
Conclusion: The share of the time factor shows that, if an economic operator starts building a unit at different times, the time they spend building their unit is different, in such a way that, on average, 38% of the changes in the unit completion time are affected by the construction start time. In addition to the time factor, variables such as the type of ownership, the type of activity, and the place of establishment also have an effect on the completion time of construction projects. According to the time rent, things, such as establishing economic justice, controlling factors that make up time such as inflation, and applying correct policies in the country, are recommended in this study. Furthermore, the granting of new licenses should be prioritized based on the type of ownership and the type of activity. To speed up the process of building conversion industries in industrial towns, it is recommended to solve the problems and shortcomings of these areas because these areas are important places for construction due to having the necessary infrastructure for industries.
Background: The establishment of agricultural industries—particularly agro-processing and complementary industries—in rural areas plays a highly significant role in the sustainable development of villages. By creating new employment opportunities, increasing rural household incomes, and improving overall economic welfare, these industries can effectively reduce the migration of rural labor to urban areas. Uncontrolled rural-to-urban migration, in addition to generating social and economic problems in cities, leads to the weakening of the agricultural sector and a decline in domestic production. Therefore, developing agro-processing industries in close proximity to farms and agricultural production units can greatly contribute to retaining the rural population and strengthening the economic foundations of rural regions. Moreover, the presence of agro-processing industries reduces post-harvest losses, improves storage and packaging processes, facilitates transportation, extends the shelf life of products, and creates value-added for raw agricultural outputs. These industries also promote the development of the service sector, improve infrastructure, enhance technological levels in rural areas, and strengthen the linkage between agriculture and industry. Consequently, it is of particular importance to examine the challenges and obstacles in the establishment and development of these industries. One of the most critical stages in the development of agro-processing industries is the construction and commissioning phase of industrial units. Investor behavior at this stage and the constraints they face can play a decisive role in the success or failure of projects. Prolonged construction periods not only increase overhead and financial costs but may also pave the way for competitors to enter the market, lead to the loss of target markets, reduce competitiveness, and result in technological backwardness. In other words, the longer the construction period of an industrial unit, the greater the impact of inflation and economic fluctuations on project costs, thereby seriously challenging its economic feasibility. Therefore, identifying and analyzing factors affecting the construction duration of agro-processing and complementary agricultural industries is both necessary and unavoidable. This study mainly aims to investigate these factors and provide empirical evidence to improve policymaking in this field.
Methods: This study utilizes data from 1,290 active agro-processing units in Mazandaran Province in 2019. A hierarchical linear model was employed to identify factors affecting the construction duration of these units. Due to its ability to disentangle effects at different levels, this model allows for a more precise analysis of the roles of individual-level and time-related factors. Accordingly, the studied units were categorized based on their year of construction commencement. The start year of construction, as the basis for temporal classification, was chosen to account for the economic, institutional, and environmental conditions faced by economic agents in different periods. These conditions include policy changes, economic fluctuations, inflation rates, access to financial resources, and market conditions, all of which can influence the duration of project construction.
Results: The results of the two-level hierarchical model show that the type of ownership, the location of establishment, and the type of activity, along with the time factor, have an effect on the construction duration of conversion industries. Private ownership has a negative effect on the construction duration of transformation industries in Mazandaran Province, and these units are put into operation faster than joint-stock and cooperative units. Moreover, if the new units are in the agricultural group, they will be put into operation 15 and 8.5 months earlier than garden and livestock activities, respectively. In addition, if a conversion unit is to be built in industrial towns, the duration of its construction is 0.84 years (10 months) longer than that of other units, and the units located in other areas reach the operational stage sooner. The time factor also explains, on average, 38% of the changes in the duration of completing the units. The minimum and maximum effects of this variable are, respectively, 25 and 46%, which are significant.
Conclusion: The share of the time factor shows that, if an economic operator starts building a unit at different times, the time they spend building their unit is different, in such a way that, on average, 38% of the changes in the unit completion time are affected by the construction start time. In addition to the time factor, variables such as the type of ownership, the type of activity, and the place of establishment also have an effect on the completion time of construction projects. According to the time rent, things, such as establishing economic justice, controlling factors that make up time such as inflation, and applying correct policies in the country, are recommended in this study. Furthermore, the granting of new licenses should be prioritized based on the type of ownership and the type of activity. To speed up the process of building conversion industries in industrial towns, it is recommended to solve the problems and shortcomings of these areas because these areas are important places for construction due to having the necessary infrastructure for industries.
Keywords: Agricultural conversion and complementary industries, Construction, Multilevel models, Mazandaran province, Time rent
Type of Study: Research |
Received: 2025/08/10 | Accepted: 2025/12/1
Received: 2025/08/10 | Accepted: 2025/12/1
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