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)

Document Type : Research Paper

Authors

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

10.30495/jae.2023.30332.2337

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,

Keywords


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