Investigating the joint relationship between bank conveniences and value added of agriculture sector in Iran

The agriculture sector in one hand provides food and other humans’ needs for survival and on the other hand in many countries it possesses the highest share in employment and GDP. Of the most effective factors on value added of the agriculture sector is methods of financing and endowment of bank conveniences identified as one of financing methods. Accordingly, the present paper aims at study of the relationship between bank conveniences of the agriculture sector and value added of the agriculture sector in Iran within years 1967 – 2010. To do this, the Granger causality and Toda and Yamamoto causality tests are used for investigating causality relationships between variables. Also, Auto Regressive Distributed Lag (ARDL) test as well as microfit software is applied for investigating co-integration between two variables. The obtained results indicated that there is no casual relationship between bank conveniences of the agriculture sector and value added of the agriculture sector.