The Effect of Monetary Policy on Value-added of the Agricultural Sector and Its Subsectors in The Iranian Economy

The aim of this research is to investigate the effect of monetary policy on the value added of the agricultural sector and its subsectors (crop, livestock, fisheries and forestry). To investigate the research of the variables; Liquidity, value added, and investment as annual data from 1991-2019, and the GMM econometric method was used. The results of the research show that liquidity in the entire agricultural sector has increased the value added by 3.06 units, While liquidity in the crop, livestock, fisheries and forestry sub-sectors has increased by 0.017, 2.76, 2.18 and 1.05 units, respectively According to the research results, monetary policies are effective in the efficiency of the agricultural sector, and based on the obtained results, it is suggested to direct the available liquidity towards investment in the productive sub-sectors of agriculture.