Abstract Monetary policy as a macroeconomic tool influences investment in agricultural sub-sectors. Given to the importance of agricultural sub-sector in the economy of Iran, the effect of monetary shocks on investment in agricultural sub-sectors was studied during the period of 1993 to 2011. By using panel data, a fixed effect model was estimated for the model of investment in sub-sectors of farming and horticulture, livestock, fisheries and forestry. The results show that monetary shocks have had a negative effect on investment in agricultural sub-sectors. In other words increasing liquidity has decreased investment in the sub-sectors. This coefficient shows that one percent increase in monetary shocks causes 0.92 percent decrease in sub-sectors' investment. Due to the results, it is proposed that the government should notice to the side effects of applying monetary policies in agricultural sub-sectors.
JEL Classification: E22, E52
Keywords: Monetary Shock, Investment, Agricultural Sub-Sectors, Panel Data
Nabieyan, S., & Sheykhpour, M. (2017). Study of Monetary Shocks on Investment in Agricultural Sub-Sectors of Iran. Agricultural Economics and Development, 24(4), 185-198. doi: 10.30490/aead.2017.59058
MLA
S. Nabieyan; M. Sheykhpour. "Study of Monetary Shocks on Investment in Agricultural Sub-Sectors of Iran". Agricultural Economics and Development, 24, 4, 2017, 185-198. doi: 10.30490/aead.2017.59058
HARVARD
Nabieyan, S., Sheykhpour, M. (2017). 'Study of Monetary Shocks on Investment in Agricultural Sub-Sectors of Iran', Agricultural Economics and Development, 24(4), pp. 185-198. doi: 10.30490/aead.2017.59058
VANCOUVER
Nabieyan, S., Sheykhpour, M. Study of Monetary Shocks on Investment in Agricultural Sub-Sectors of Iran. Agricultural Economics and Development, 2017; 24(4): 185-198. doi: 10.30490/aead.2017.59058