Zeinab Shabani Koshalshahi; Amir Mansour Tehranchian; Seyed Mojtaba Mojaverian
Volume 5, 17(3) , December 2015, , Pages 24-13
Abstract
The purpose of the present study is investigating the impact of monetary policy on private sector investment of Iran,s agricultural subsectors (1978-2011). Therefore, the Generalized Method of Moments (GMM) is used. Obtained results indicated that the monetary policy in all 3 subsectors has a positive ...
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The purpose of the present study is investigating the impact of monetary policy on private sector investment of Iran,s agricultural subsectors (1978-2011). Therefore, the Generalized Method of Moments (GMM) is used. Obtained results indicated that the monetary policy in all 3 subsectors has a positive and significant impact on private sector investment. The effectiveness of monetary policy on private sector investment of fisheries subsector has been evaluated more than other ones. So, following the imposition of monetary policy by the government, private sector investment in the fisheries subsector will increase more than two other subsectors. Elasticity of investment to interest rate and inflation is negative and significant, and to exchange rate and price index, is positive and significant. The effect of government investment in all 3 subsectors is negative and significant. According to emphasis of Article 143 of the Law of Fifth Development Plan on state support of the private sector investment in order to promote the agricultural sector's added value and according to results, the recommendation is that policy makers should pay attention to facilitate the flow of supplying credits to the agricultural sector.