Evaluation of Effect of Bank Credits on Production and Export of Agricultural Sector (1984-2006)

The main purpose of this study was to examin the circumstance of bank credits effect on production and export of agricultural sector over the 1984-2006 periods. First, by using time series analysis, stationary and cointegration between variables were analysed and long-run relationship was estimated. To this end, the Johansen's cointegration method and several other methods (such as SUR) for production and export have been used.
The results show that variables of credits, investment stock and labor had positive and significant impacts on value added of agricultural sector. The results also revealed that variables of value added, real exchange rate and capital stock had positive and significant impacts on agricultural export sector.Research finding reveal that there is a positive relation between bank credits and agricultural export in this section.
JEL Classification: Q17, C32, E10, F13