Investigate the Effect of Agricultural Bank Payment Facilities on the Growth of Agricultural Sub-Sectors

Agriculture sector needs to particular attention for the formulation of economic policy due to noteworthy facilities of the country in its sector, economic activity of many populations in it and important contribution of this sector in non-oil export. In the issues agricultural development, credit is one of the solutions to fix financial problems of farmers. In this study, the effect of agricultural bank payment facility is investigated on the value added agricultural sub- sectors of agronomy and horticulture, animal husbandry and fisheries. The Cobb - Douglas function as the best choice is estimated by using panel data model and fixed effect method over the period 1991-2009, that labor force, capital stock and payment facilities variables are entered as independent variables in model. The results show that payment facilities have an impact of positive completely significant on the value added agricultural sub sectors. Based on the results, payment facilities respectively have had an impact on sub-sectors of the fisheries, agronomy and horticulture and animal husbandry to the amount of % 0.12, %0.06 and % 0.005. According to the different influence of payment facilities on the sub-sectors growth, it suggests that will be reviewed in its percentage and how to payment.