Survey of the Impacts of Monetary and Fiscal Policies on Private Investment in Iranian Agricultural Sector

Agriculture plays an important role in economic development، so in agriculture can be considered more important than other sectors. This paper analyses the impact of monetary and fiscal policies on agricultural private investment. The private investment equation is estimated using ARDL approach during of 1960–2005. The results showed that the fiscal policy has a negative impact on agricultural private investment، while monetary policy has significant and positive impact on private investment in agriculture. Moreover، the rate of agriculture prices was found to have positive influence، and its instability indicator was found to have negative influence over private investment in agriculture sector.