The impact of Government expenses on the growth of Agricultural sector of Iran

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International Journal of Development Research

The impact of Government expenses on the growth of Agricultural sector of Iran

Abstract: 

 Agriculture sector is a very important sector in Iran's economy. The government pays a huge subsidy for consumption.The research attempts to study the impact of Government Development Costs (GDC) and Current Government Expenses (CGE) on the growth of agricultural sector in the process of trade liberalisation. We used in this paper, Solow's model is determined for the economy of Iran with the assistance of subject literature and the anticipation is accomplished for the future with the  contribution of econometric methods VECM,VAR. But we explore that: Government development costs possess positive impact on the added value of agriculture section, but Current Government Expenses is indicative of negative role on agricultural production.

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