The Study of Inflationary Tax Influence on the Agriculture Sector Growth in Iran

The agriculture is one of the most strategic sectors of Iran economy and it is important for several aspects. The growth of this sector is counted as the primary and basic aims of politicians. The current study, investigates inflationary tax impacts on growth of Iran agriculture sector. The Solo growth model was used, in which growth is a function of labor, capital stock and inflationary taxes. In order to estimate the short run and long run relations ARDL model was used. The results showed that there is a direct relation between capital stock with growth of agriculture sector in the short run and long run. In addition, the effect of labor force and inflationary tax on the growth of agriculture sector is negative in short and long run.