A Study on the Effect of Agribank Credit Facilities on Agricultural Exports of Southern Khorasan Province

Agribank credit facilities, agricultural exports, Southern Khorasan

Authors

  • Nazar Dahmardeh Professor In Economic, University of Sistan And Baluchestan, Zahedan, Iran.
  • Elahe Ahani Student In Agricultural Economics, University of Sistan And Baluchestan , Zahedan, Iran.
April 19, 2018

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Agricultural sector is one of the most important economic sectors and investigating the relationship between effective factors on the exports of this sector is of great importance. This section has a significant role in economic development, employment and non-oil exports country as well as providing food security and has on average 17% percent of GDP and 23.5 % of employment, and also more than 80% of the food community supplied by this section.  The present study examines  the role  of Agribank credit facilities in agricultural exports in Southern Khorasan Province. So, the effect of Agribank credit facilities on investment, the effect of  investment  on the stock of capital,  the effect  of the stock of capital on GDP of agricultural sector, and the effect of agricultural sector GDP on agricultural exports were studied using seasonal time series data of Southern Khorasan Province  for  the period 2006-2015 and seemingly unrelated equations  system.  It  was  found that  one unit  increase in Agribank credit facilities enhances investment in agricultural sector by 0.36 units, GDP  of agricultural sector by 0.26 units, and agricultural exports by 0.53 units. Therefore, in the studied time series, Agribank credit facilities and agricultural exports of Southern Khorsan Province had a positive and growing trend.