Effects of Financial Repression on Capital Productivity in Agricultural Sector Case Study Islamic Republic of Iran (1953-2007)

Samadi, Ali Hossein; Torkamani, Javad; Mansouri, Sanaz

Effects of Financial Repression on Capital Productivity in Agricultural Sector Case Study Islamic Republic of Iran (1953-2007)

Document Type : Research Paper

Authors

¹ Assistant Professor of Economics, University of Shiraz

² Professor of Agricultural Economics, Azad University, Marvdasht Branch

³ M.S. in Agricultural Economics, University of Shiraz, Shiraz, Iran

Abstract

Agricultural sector as one of the main economic sectors of Iran has a great share in total GDP. The, present study, aims to examine the effects of financial repression policies on capital productivity in agricultural sector. In doing so, we use time series data during 1953-2007 and Gregory – Hansen Cointegration and DOLS methods. Results show that financial repression has no effect on productivity of capital in Iran’s agricultural sector in the long-run. Capital stock and non financial saving both show positive effect on capital productivity in agricultural sector.

Keywords