Analysis of Credit's Share of Agricultural Bank in Agriculture Sector of Iran

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Abstract

Capital is one of the important factors in agricultural production and Agricultural Bank as a major donor bank credit to agriculture section has effective role in funding is required in this section. Therefore in the present study the role of the credit's share in Iran agriculture system during 1984-2006 was studied. Also by derivation demand curve credit share has been analyzed. In another part of this research for analysis the value added intended simultaneous equations system is used. The results of simultaneous equation of intended value added and intended price imply high elasticity of current year’s value added and product prices of current year. Also the result of analysis of demand curve credit showed that significant share of farmer's capital required for production and investment provide by private capital of farmers. Therefore toward to aims of national development pay more attention to give facilities can help to this important economic sector.

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