On the role of credit in agricultural growth: An Iranian panel data analysis

Saeed Hosseini Nejad; Reza Moghaddasi; Amir Mohammadi Nejad; Saeed Hosseini Nejad; Reza Moghaddasi; Amir Mohammadi Nejad

doi:10.3934/agrfood.2018.1.1

AIMS Agriculture and Food

2018, Volume 3, Issue 1: 1-11. doi: 10.3934/agrfood.2018.1.1

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Research article

On the role of credit in agricultural growth: An Iranian panel data analysis

Department of Agricultural Economics, College of Agriculture and Natural Resources, Science and Research Branch, Islamic Azad University, Tehran, Iran

Received: 29 October 2017 Accepted: 09 January 2018 Published: 31 January 2018

Credit is considered as a major stimulus of economic growth especially in developing economies. Given the critical role of agriculture in Iranian economy in one hand and lack of credit on the other hand, study on the association between credit and sector growth is necessary. Based on a provincial panel data set, this article identifies econometrically the impact of credits provided by non-governmental funds on agricultural growth for the period 2008–2014. Main results introduce credit as a driver of sector growth as one percent rise in credits allocated leads, on average, to 0.59 percent increase in agricultural growth. Same effect is found for labor, public investment and energy inputs. Public supportive policies aiming at empowering of private funds and increase their capital, is recommended.
- non-governmental funds,
- credit,
- agriculture,
- panel data,
- Iran
Citation: Saeed Hosseini Nejad, Reza Moghaddasi, Amir Mohammadi Nejad. On the role of credit in agricultural growth: An Iranian panel data analysis[J]. AIMS Agriculture and Food, 2018, 3(1): 1-11. doi: 10.3934/agrfood.2018.1.1

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Abstract

Credit is considered as a major stimulus of economic growth especially in developing economies. Given the critical role of agriculture in Iranian economy in one hand and lack of credit on the other hand, study on the association between credit and sector growth is necessary. Based on a provincial panel data set, this article identifies econometrically the impact of credits provided by non-governmental funds on agricultural growth for the period 2008–2014. Main results introduce credit as a driver of sector growth as one percent rise in credits allocated leads, on average, to 0.59 percent increase in agricultural growth. Same effect is found for labor, public investment and energy inputs. Public supportive policies aiming at empowering of private funds and increase their capital, is recommended.

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