• Home
  • The Effect of Public Deposits and Agricultural Bank Credits on the Value Added of the Agricultural Sector in the west selected provinces of Iran (Application of Panel ARDL method)

Share To

Article Url


Manuscript ID : JAE-2204-2337 (R1) Visit : 82 Page: 1 - 14

10.30495/jae.2023.30332.2337

Article Type: Original Research

The Effect of Public Deposits and Agricultural Bank Credits on the Value Added of the Agricultural Sector in the west selected provinces of Iran (Application of Panel ARDL method)

Subject Areas : Agricultural Economics Research

Jaber Darvishi 1 , Mohammad Hasan Fotros 2 , Mostafa Baniasadi 3

1 - MSc graduated of Agricultural Economics, Bu-Ali Sina University
2 - Professor of Economics, Bu-Ali Sina University
3 - Assistant Professor of Agricultural Economics, Bu-Ali Sina University

Received: 2022-04-22 Accepted : 2023-10-19 Published : 2024-07-22

Keywords: agricultural growth, Provincial credits, Pooled Mean Group, Long-term relationship, Panel cointegration,

Abstract :

In this study, the effect of public despite and agricultural bank credits on the value added of the agricultural sector in the western provinces of the Iran (Hamedan, Kermanshah, Kurdistan, Lorestan and Ilam) during the period 2001 to 2019 has been studied.

In order to investigate the effect of Keshavarzi Bank credits on agricultural value added and to investigate the existence of integration and long-term relationship, the Panel Autoregressive Distributed Lag (Panel ARDL) model was used.

The results of the study showed that the real amount of agricultural bank credits has a positive and significant effect on the value added of the agricultural sector. The results of estimating the co-integration relationship show that there is a positive and significant relationship between the real values of value added of the agricultural sector and the credits granted to the sector in the long run. Also, the variables of public deposits in the Agricultural Bank and labor force had a positive and significant effect on value added,

References:


  1. Abounoori A, Khajezadeh M. Analyzing the impact of financial and trade expansion on economic growth in OPEC member countries. Journal of Financial Economics. 2020; 14(51): 173-193. [DOI:10.22059/IJAEDR.2020.285332.668786]
    2.
  2. Agriculture Bank. Agricultural Bank specialized credits. 2020. https://www.bki.ir/.
    3.
  3. Ahmad K, Chin Theng Heng A. Determinants of agriculture productivity growth in Pakistan. International Research J Finan Econ. 2012; 95: 163-172. [DOI: 10.31703/ger.2016(I-I).01].
    4.
  4. Ahmad N. Impact of institutional credit on agricultural output: A case study of Pakistan. Theor Appl Econ. 2011; 10(563): 5-16. https://www.jstor.org/stable/41260420.
    5.
  5. Ahmed A, Uddin GS, Sohag K. Biomass energy, technological progress and the environmental Kuznets curve: evidence from selected European countries. Biom Bioener. 2016; 90: 202-208. [DOI: 10.1016/j.biombioe.2016.04.004].
    6.
  6. Akram W. Impact of agriculture credit on growth and poverty in Pakistan (time series analysis through error correction model). Europ J Scient Res. 2008; 23(2): 243-251. [10.22004/ag.econ.198003].
    7.
  7. Ananzeh IN. Relationship between bank credit and economic growth: evidence from Jordan. Int J Finan Res. 2016; 7(2): 53-63. [DOI: 10.5430/ijfr.v7n2p53].
    8.
  8. Arabmzar A, Ranjbar S, Nejadaghaeianvash P. The impact of banking credit of bank Keshavarzi on value added and employment of the agricultural sector. Econ Model. 2018; 9(3): 131-183. https://ecoj.sbu.ac.ir/article_81625.html?lang=en.
    9.
  9. Arellano M. Panel Data Econometrics. Oxford University Press, Oxford, 2003. [DOI: 10.1093/0199245282.001.0001].
    10.
  10. Baltagi B. Econometric Analysis of Panel Data (Vol. 1). John Wilay & Sons, NewYork, 2008. https://library.wbi.ac.id/repository/27.pdf.
    11.
  11. Campos NF, Kinoshita Y. Foreign direct investment and structural reforms: evidence from Eastern Europe and Latin America (No. 6690). CEPR Discussion Papers, 2008. https://ssrn.com/abstract=1141012.
    12.
  12. Chaitip P. Chokethaworn K. Chaiboonsri C. Khounkhalax M. Money supply influence on economic growth-wide phenomena of AEC open region. Proc Econ Finan. 2015; 24: 108-115. [DOI: 10.1016/S2212-5671(15)00626-7].
    13.
  13. Chandio AA, Yuansheng J, Sahito JGhM, Larik ShA. Impact of formal credit on agricultural output: Evidence from Pakistan. Afric J Busin Manag. 2016; 10(8): 162-168. [DOI: 5897/AJBM2015.8042].
    14.
  14. Das A, Senapati M, John J. Impact of agricultural credit on agriculture production: an empirical analysis in India. Reserve Bank of India Occasional Papers. 2009; 30(2): 75-107. https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2240.
    15.
  15. Fatthi Aghababa M, Azizi K, Mahmmodzade M. The impact of bank facilities in different areas of economy on the growth of the added values in industry, services, agriculture, building construction and housing. J Econ Model. 2020; 14(2): 77-102.
    16.

 http://eco.iaufb.ac.ir/article_674218_en.html. 

  1. Hekmat nia M, Razavi MS Tehranifard G, Rostamian R. Investigating the trend of loans paid to Iranian farmers in the years between 1991 and 2010 and its relationship with value added in the agricultural sector. International Conference on Sustainable Development, Strategies and Challenges Focusing on Agriculture, Natural Resources, Environment and Tourism. Iran, Tabriz, 2014. https://civilica.com/doc/354581/.
    2.
  2. Hoomani Farahani M, Shahbazi K, Faalju HR. The effects of financial development on value added of agriculture in D8 countries. Agricultural Economics Research. 2018; 10(1): 135-154. http://jae.miau.ac.ir/article_2836_en.html.
    3.
  3. Hosseini Nejad S, Moghaddasi R, Mohammadi Nejad A. On the role of credit in agricultural growth: An Iranian panel data analysis. AIMS Agri Food. 2018; 3(1): 1-11. [DOI: 10.3934/agrfood.2018.1.1].
    4.
  4. Iqbal M, Munir A, Kalbe A. The impact of institutional credit on agricultural production in pakistan. Pakistan Development Review. 2003; 42(2): 469-485. https://www.jstor.org/stable/41260420.
    5.
  5. Levin A, Lin CF, Chu CJ. Unit root tests in panel data: asymptotic and finite-sample properties. J Econometrics. 2002; 108: 1-24. [DOI: 10.1016/S0304-4076(01)00098-7].
    6.
  6. Mensah IA, Sun M, Gao C, Omari-Sasu AY, Zhu D, Ampimah BC, Quarcoo A. Analysis on the nexus of economic growth, fossil fuel energy consumption, CO2 emissions and oil price in Africa based on a PMG panel ARDL approach. J Clean Prod. 2019; 228: 161-174. [DOI: 10.1016/j.jclepro.2019.04.281].
    7.
  7. Ministry of Agriculture. Agricultural statistics. Department of Statistics and Information. 2022. https://maj.ir/page-amar/FA/65/form/pId3352.
    8.
  8. Mohamadnejad N, Fotros MH, Masoumi MR. Analysis of the association between bank credit and economic growth. Monetary and Finance Economics. 2016; 22(10): 1-21. [DOI: 10.22067/PM.V22I10.41270].
    9.
  9. Negintaji Z, Omidi kia M. The effect of banking facilities on macroeconomic variables of agriculture. J Econ Model. 2014; 7(4): 71-87. http://eco.iaufb.ac.ir/article_554924.html?lang=fa.
    10.
  10. Parva S, Moghaddasi Is credit a driver for agricultural growth? An Iranian provincial analysis. J Agri Sci Tech. 2018; 20: 1333-1340. https://jast.modares.ac.ir/article-23-20024-en.pdf.
    11.
  11. Pesaran HM, Shin Y, Smith RJ. Bounds testing approaches to the analysis of level relationships. J Appl Economet. 2001; 16: 289-326. [DOI: 10.1002/jae.616].
    12.
  12. Pesaran MH, Shin Y, Smith R. Pooled mean group estimation and dynamic heterogeneous panels. J Americ Statis Assoc. 1999; 94: 621-634. [DOI: 10.1080/01621459.1999.10474156].
    13.
  13. Pesaran MH, Shin Y. An autoregressive distributed lag modeling approach to cointegration analysis. Economet Soc Monog. 1998; 21: 371-413. [DOI: 10.1.1.153.3246&rep=rep1&type=pdf].
    14.
  14. Seven U, Tumen S. Agricultural Credits and Agricultural Productivity: Cross-Country Evidence. Discussion Paper Series No. 12930, IZA – Institute of Labor Economics, Bonn, Germany, 2020. https://docs.iza.org/dp12930.pdf.
    15.
  15. Shabani Koshalshahi Z, Tehranchian AM, Mojaverian SM. Comparing the impact of credit and liquidity on the value added of Iranian agricultural sector. Agricultural Econmics Research. 2018; 9(4): 22-38.
    16.

http://jae.miau.ac.ir/article_2579.html?lang=en 

  1. Sharifi Renani H, Tavakol A, Honarvar N. Effect of agricultural credit banks on the value added of agricultural sector in Iran. Agricultural Economics and Development. 2013; 21(4): 201-227.http://aead.agriperi.ac.ir/article_58725.html?lang=en.
    2.
  2. Sharmeen K, Chowdhury ST. Agricultural growth and agricultural credit in the Context of Bangladesh. Bangladesh Rese Pub J. 2013; 8(2):
    174-179. https://www.yumpu.com/en/document/view/52474655/agricultural-growth-and-agricultural-credit-in-the-context-of-bangladesh.
    3.
  3. Solow R. A contribution to the theory of economic growth. J Econ. 1956; 70(1): 65-94. [DOI: 10.2307/1884513].
    4.
  4. Udoka ChO, Mbat DO, Duke SB. The effect of commercial bank’s credit on agricultural production in Nigeria. J Finan Accoun. 2016; 4(1): 1-10. [DOI: 10.12691/jfa-4-1-1].
    5.
_||_

Related articles

The rights to this website are owned by the Raimag Press Management System.
Copyright © 2021-2024

Home| Login| About Us| Contact Us|
[فارسی] [العربية] [fa] [ar]