Investigating interaction effects among Iranian economic sectors with emphasis on agricultural sector

Document Type : Original Article

Abstract

     Because of importance of agricultural sector in Iranian economic and linkages of this sector with other economic sectors, investigating intersectoral linkages has had an increasing attention. In this study, with dividing Iranian economy in four sectors (agriculture, industry, service and oil) the purpose has been studying interaction effects of economic sectors. Also some equations have been designed for investing in non-agricultural sector, non-oil export supply, import demand and rural-urban terms of trade. Data are collected from various official sources in the period of 1971-2003. Results from systemic regressed equations by 3SLS procedure showed that the industrial sector has had a positive effect on GDP growth of agricultural sector while oil and service sectors have had a negative effect on agricultural sector. Also, service sector has had a positive link with industry.   JEL classification: C22, E1, Q1