The Impact of Financial Development and Economic Freedom on the Economic Growth of the Agricultural Sector (Case Study: Selected Middle Eastern Countries with Emphasis on Iran)

Document Type : Research Paper

Authors

1 Ph.D. Student of Agricultural Economic, Department of Agricultural Economic, Collage of Agricultural Economic, University of Zabol-Zabol-Iran

2 Associate Professor, Department of Agricultural Economic, Collage of Agricultural Economic, University of Zabol-Zabol-Iran

3 Assistant Professor, Department of Agricultural Economic, Collage of Agricultural Economic, University of Zabol-Zabol-Iran

4 Assistant Professor, Department of Agricultural Extension and Education, Collage of Agricultural, University of Jiroft-Jiroft-Iran

Abstract

One of the factors that play a key role in achieving the goal of rapid and sustained economic growth is the expansion of the financial sector. Therefore, the development and expansion of financial markets in the agricultural sector of these countries is of particular importance. Also, one of the macroeconomic goals of countries is to create the conditions necessary to promote sustainable and sustainable economic growth. The purpose of the present study is to investigate the impact of financial expansion and economic freedom on the growth of selected agricultural products in the Middle East countries with emphasis on Iran during the period 2016-2017. The method used in this study is fixed effects method based on the results of Hausman country test. The results showed that financial expansion, economic freedom, physical capital and labor force in agricultural sector had positive and significant effects on growth with coefficients of 0.39, 0.42, 0.31 and 0.12, respectively. The agricultural products are in the Middle East and Iran. Therefore, it is suggested that countries in the Middle East, and in particular Iran, can grow further in the agricultural sector by opening the door to trade by removing tariff barriers and trade restrictions.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 53, Issue 4
November 2022
Pages 1103-1116

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