Considering importance of agriculture in developing countries, policymakers have always emphasized on agricultural growth as prerequisite of nationwide economic growth. Meanwhile, the relationship between financial development and the growth of the agricultural sector has been the subject of several studies leading to different results. Therefore, the present study aims to create new insight into this subject by applying new analytical method. This study applies continuous wavelet and time-frequency domain analyses. Since financial development has a wide range of dimensions, this study uses credit growth, number of ATMs and spatial distribution of Agriculture Bank’s branches as financial development measures. It was found that agricultural growth leads to credit growth both in the short and long run. We could not find any association between number of ATMs and agricultural growth. However, spatial expansion of Agriculture Bank in the short run was positively affected by sector growth as well as in the midterm.

Keywords: Agricultural Growth, Financial Development, Wavelet Analysis, Iran.

JEL classification: Q14, C22