The Impact of Economic Sector's Value Added on Economic Growth: The case of The Iranian Provinces During 4th Development Plan

The Economy of the Third World countries such as Iran is mostly dependent on agricultural product mainly produced in the farms. In order to improve the modes of traditional agricultural products and to optimize the use of land it is necessary to increase economic growth to achieve sustainable development in Iran. It should be noted that without paying attention on development as well as outlook plan the country cannot achieve its economic goals especially in agriculture sector. The present paper deals with the value added of the economic sectors in 30 provinces of Iran during the country’s 4th economic development plan (i.e. 2005-2009),The results based on the pane data regression estimation indicate that the growth of agricultural products have positive and significance impacts on the growth of the provinces GDP. Therefore, it is suggested that to achieve the macroeconomic goals in agriculture sector, the government must seriously concentrate on agricultural products.