Search Articles

Home / Articles

Is Financial Development a Driver for Agricultural Export Application of Wavelet Analysis on Iran’s Data

. Hamdollah Seifi Khodashahri Reza Moghaddasi and Yaghoub Zeraatkish


Abstract

Agriculture is one of the sectors with a considerable share in the economy of countries. Due to the single-product nature of products and the imposition of oppressive international sanctions, the export of this sector is considered as one of the options for foreign exchange earnings. In this regard, evaluating the factors affecting export is of particular significance. Therefore, the present study aimed to investigate the relationship between financial development and agricultural sector export in the Iranian economy during 1979-2017. For this purpose, this study used two indicators of credits and the number of branches of Agricultural Bank as a representative of financial development. The results of using continuous wavelet transform and time-frequency analysis showed that financial development can only be associated with the increase of export through granting credits in the short term. In the long term, no significant relationship was found between the two variables as rooted in the policy-making and requirements of the Iranian economy. Significant policy implications were provided by analyzing the results.

Keywrds: Financial development, export, continuous wavelet transform

Download :