چکیده:
here have been few studies working on effects of financial repression policies on Iran’s economic growth. Considering the huge share of agricultural sector, we have been trying fill this gap by the help of time series data from 1962 to 2007 on agricultural GDP, unproductive government expenditures, human capital, industrial price index, political instability, and financial repression measurements. Results show that bank reserve requirement control policies as a proxy for financial repression measure, has negative effect which reminds reducing controls on this parameter will help government achieve higher rate of growth.
خلاصه ماشینی:
Considering the huge share of agricultural sector, we have been trying fill this gap by the help of time series data from 1962 to 2007 on agricultural GDP, unproductive government expenditures, human capital, industrial price index, political instability, and financial repression measurements.
Results show that bank reserve requirement control policies as a proxy for financial repression measure, has negative effect which reminds reducing controls on thisparameter will help government achieve higher rate of growth .
Government intervention on controlling interest rate, reserve requirements and other limitations on banking systems are known as financial repression policies which reduce capital stock formation and its productivity (which lead to lower rate of economic growth).
Effects of financial repression policies on growth rate were evaluated by the help of time series and panel data in different studies but few of them work specifically on agricultural sector.
Based on McKinnon and Shaw (1973) theory, financial repression policies will slow the speed of economic development by reducing real growth rate and the capacity of financial system.
Based on this study, if government eliminate financial repression policies and increase the real interest rate, real investment and saving levels will be increased and will lead to higher revenue and economic growth.
/149 {مراجعه شود به فایل جدول الحاقی} 150/ Financial Repression and Agricultural Growth … deposits interest rate will have recessionary effects on economy which means it may lower economic growth and increase inflation rate.
In few studies, effects of these financial repression policies were evaluated on agricultural economic growth.