The Impact of Financial Development on Agricultural Productivity Growth in Selected Islamic Countries

Financial development can help economic growth and development by helping accelerate investment. On the other hand, the agricultural sector, especially in developing countries, is an important factor in achieving economic growth and development. Due to the common concern of Islamic countries in the area of financial development and agricultural productivity growth, this study has been considered for the purpose of this study in the period 2017-2000. According to the results of the cross-sectional dependency test and the root unit test of boys, the AMG method was used to estimate the model, the results of which show a positive and significant impact of financial development on agricultural productivity in the selected Islamic countries, by increasing one. Percentage of financial development index, agricultural productivity the agricultural productivity growth will increase by 0.709%. The positive effect of this variable indicates that by increasing private-sector lending, it has made it easier for farmers and firms to finance and reduce transaction and production costs.