Financial Repression and Agricultural Growth: the Case of Islamic Republic of Iran (1962-2007)

There have been few studies working on effects of financial repression policies on Iran’s economic growth. Considering the huge share of agricultural sector, we have been trying fill this gap by the help of time series data from 1962 to 2007 on agricultural GDP, unproductive government expenditures, human capital, industrial price index, political instability, and financial repression measurements. Results show that bank reserve requirement control policies as a proxy for financial repression measure, has negative effect which reminds reducing controls on this parameter will help government achieve higher rate of growth.