Factors Affecting
Factors Affecting Public Sector
Investment in Agriculture in Iran: The Usage of Unrestricted
Error Correction Model
Seyed Nemat Allah Mousavi, Azadeh Dogani and
Javad Torkamani
Department Of Agricultural
Economics, Marvdasht Branch,Islamic Azad University,Marvdasht,Iran
*Corresponding
author: [email protected]
Abstract:
Agriculture in Iran is the greatest economical sector after petroleum and
services sectors which has devoted about 20 percent of national gross
production and main share of non- petroleum exports, so that, this section
development has determinate role in economical growth. Investment in
agriculture section is one of factors which due to increase in demand for food
and other agriculture products can cause to develop production and more
employment in agriculture section. Therefore, in this section, it has been
tried that Long- term effect of parameters such as petroleum incomes,
investment stock, value-added, national income and inflation rate on state or
governmental investment by use of conditional ARDL pattern is in frame of
Pesaran and Shin (It applies for time series and variables can be I (0) or I
(1)), this is studied for 1356-1386 periods. The results of this study
showed that there is Long-term relation between governmental investment,
petroleum incomes, investment stock, value-added, national income and inflation
rate. On the other hand, governmental investment has the most and least
sensitive to Value-added and petroleum income, respectively.
[Seyed Nemat Allah Mousavi, Azadeh Dogani and Javad
Torkamani. Factors Affecting Public Sector Investment in Agriculture in
Iran: The Usage of Unrestricted Error Correction Mode. Life Sci J
2012;9(1):367-373]. (ISSN: 1097-8135).http://www.lifesciencesite.com. 53
Key words: Governmental investment, ARDL model, error correction model, elasticity.
