Bank Credits and Investment Growth of Agricultural Sector in Iran

Subject Areas : Environmental policy and management

Mehdi Shabanzadeh ¹ , Reza Esfanjari Kenari ² , Parinaz Jansouz ³ , Mohammad Kavoosi Kalashami ⁴

1 - Ph.D. Student of Agricultural Economics, Faculty of Agricultural Economic and Development, university of Tehran
2 - Ph.D. of Agricultural Economics, Faculty of Agricultural Economics, Zabol University
3 - Ph.D. Student of Agricultural Economics, Faculty of Agricultural Economics, University of Sistan and Baluchestan
4 - Assistant professor, Department of Agricultural Economics, Faculty of Agricultural Sciences, University of Guilan

Received: 2014-07-08 Accepted : 2014-11-07 Published : 2016-03-01

Keywords: Iran, ARDL, oil revenues, Bank Credits, growth investing,

Abstract :

This study were examined relationship between bank credits and investment growth of agricultural sector in Iran during the period of 1982-2011 by auto regressive distribution lag bounds test approach. Basically, the growth investing of the agricultural sector in Iran is related to oil revenues, bank credits, value added of agriculture sector and capital stock. The results confirm the existence of a long-run relationship between variables in model. In addition, according to the results, bank credit is the most significant variable in explaining the growth investing, so that increases access to it will encourage growth investment of the agricultural sector in Iran. The estimations show that elasticity of bank credits, oil revenues, stock investment and value added are 0.103, 0.015, 0.049 and -0.058 in the agricultural sector respectively.

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