Investigation of relationship between agricultural growth and macroeconomic variables in Iran
Masoud Dehdashti 1, Hamid Mohammadi 2
1. Department of Economics and Management, Dashtestan Branch, Islamic Azad University, Dashtestan, Iran; 2. Department of Agricultural Economics, University of Zabol, Zabol, Iran. firstname.lastname@example.org
Abstract: Agriculture is one of the main sectors of Iranian economy that contributes to economic growth and it can release Iranian economy from depending on single-product situation. Agriculture sector like other sector is affected from changes in macroeconomic variables. During passing to a developed agriculture, it is important to consider the macroeconomic variables relation as the relations affect the economic policies efficiency and agricultural growth. Investigating these variables impacts on agriculture sector may help policy makers and planers. This study investigates dynamic relation between agricultural sector income and macroeconomic variables in integration framework during 1338-1387. To get the study objective, autoregressive distributed lag (ARDL) approach and Johansson integration model was used. Findings of the study showed a long-run relationship between selected macroeconomic variables and agriculture sector income. There is a positive (negative) relation between agriculture prices and agriculture income in short run (lung run) . We also found a negative (positive) relation between interest rate (exchange rate) and agriculture income in short and long run. A positive relation in short run and negative relation in lung run also are expected between money volume and agriculture income. Oil income has a positive and significant impact on agriculture income; however, it is unimportant in value and occurs with time lag.
[Dehdashti M, Mohammadi H. Investigation of relationship between agricultural growth and macroeconomic variables in Iran. J Am Sci 2012;8(10):728-737]. (ISSN: 1545-1003).http://www.jofamericanscience.org. 98
Keywords: Interest rate, Money volume, Oil income, Agriculture sector Full Text 98