چكيده لاتين :
The objective of this study is to model and estimate the
effect of financial services in the agricultural sector of Iran on
the value added of this sector. Moreover, since as of 1984, the
Interest Free Banking law was implemented, the effect of this
change on the value added of the sector will be studied as the
second objective. The model ofthe study consists ofthree tions.
The volume ofreal investment in the first tion. is assumed to be
the function of value added, flow of finance, and last yearיs
capital stock. The second tion consists of a capital accumulation
identity, and the third tion formulates value added as function
of capital stock and labor force in the agricultural sector. The
three tions are estimated simultaneously with co integration
method and both long run and short run estimation of
coefficients exhibit a positive and significant effect of credit on
both the capital stock and output. Further, the results show
application of Islamic tools of finance also contribute to the
increase of agricultural sectorיs value added significantly.
These results reinforce the arguments of Islamic economists
that Islamic finance is growth promoting.
