The Symmetric and asymmetric effects of oil shocks on the agricultural and industry value added

Oil is one of the most important sources of income for oil-exporting countries and the main raw material in the production process.Oil price shocks can cause instability in macroeconomic variables, such as value-added agriculture and industry in the Iran that is part of the Petroleum Exporting Countries. This research examines the effects of symmetric and asymmetric oil shocks on the value added agriculture as the part that is mostly governed by the private sector, and Value added of industry as the part that is mostly governed by the Government sector. In this regard, the first oil shocks by nonlinear GARCH model extracted then use the VECM to examine the effects of positive and negative shocks on the value added of the agriculture and industry sectors to be paid. The results shows that the effects of oil shocks on the agricultural and industry value added have an asymmetric effects and industry value added is more than agriculture value added effected by positive oil shocks.