Investigating Causality Between Agricultural and Economic Growth in Iran

Subject Areas : Journal of Crop Ecophysiology

A. Falsafian ¹ ( Staff Member of Islamic Azad University, Tabriz Branch and P.h.D. Student at Islamic Azad University, Tehran Scince and Reearch Branch, Iran )
M. Ghahremanzadeh ² ( Assistant Professor, Department of Agricultural Economics, Faculty of Agriclture, University of Tabriz, Iran )
L. Gholami ³ ( M.Sc. Student, Department of Economics, University of Tabriz. Tabriz, Iran )

Received: 2010-01-02 Accepted : 2010-10-08 Published : 2010-08-23

Keywords: Economic Growth, Agricultural growth, Granjer causality,

Abstract :

Although rate of economic growth is not the only way to measure economic development, it is relatively more important than the other indices. Agriculture sector plays the main role on economic growth and sustainable development. In addition, it has significant impact on most social, political and economic issues by producing strategic food products for ever-increasing population. Therefore, the present study investigated causal relationship between agricultural and economic growth in Iran. To this end, the Granjer’s causality test was used after employing the Augmented Dicky-Fuller test to see if the variables under consideration are stationary. The result showed that there is a long learn feedback relationship between these variables and agricultural developments.