Impact of monetary policy on agricultural domestic product in iraq for the period (1990-2014)
Other Title(s)
تحليل اقتصادي لتأثير بعض مؤشرات السياسة النقدية في الناتج المحلي الزراعي في العراق للمدة (1990-2014)
Joint Authors
Salim, Yusr Ali
Ahmad, Aidah Fawzi
Source
The Iraqi Journal of Agricultural Science
Issue
Vol. 50, Issue 2 (30 Apr. 2019), pp.557-566, 10 p.
Publisher
University of Baghdad College of Agriculture
Publication Date
2019-04-30
Country of Publication
Iraq
No. of Pages
10
Main Subjects
Economy and Commerce
Agriculture
Topics
- Monetary policy
- Agricultural production
- Agriculture
- Iraq
- Twenty-first century
- Twentieth century
- Economic aspects
Abstract EN
This research aims to investigate the impact of monetary policy on agricultural GDP through monetary indicators such as exchange rate, interest rate, money supply and inflation for the period (1990-2014).
The relationship was estimated through the (VECM) error correction model using statistical beam.
The long - run equilibrium relationship between the variables of the model and the results of the estimation of the relationship in the short run revealed that the agricultural GDP is affected by the variables of monetary policy has been found that both inflation and money supply has a positive and significant the effect means that the increase in money supply by 1 % will lead to an increase in output.
The GDP by 0.25 % and this is Identically by the economic logic, in other words, the expansion of any activity needs more capital just the increasing in the inflation rate by 1 % will lead to an increase in agricultural GDP by 0.05%.This means that the high level of prices encourages investors and producers to expand production capacities and increase production, while the price of exchange and the price of interest has not proved significant each.
In the long term, the most influential variables are the interest rate as a 1 % drop in interest rates will lead to higher GDP Agricultural by 0.3%.The Inflation came after the interest rate in terms of impact and came with positive signal and this is opposed to economic logic.
The research concluded that inflation has a positive effect on agricultural production in the short and long run.
Furthermore, increasing the money supply by expanding credit has a significant role that exceeds the rest of the variables.
The research recommended adopting an expansionary monetary policy while taking into consideration the control of inflation with reducing it in the future and contributing to price stability.
Including prices of agricultural products and inputs.
In addition to incentive private banks to expand agricultural credit and take into account the monetary indicators and development in the making of agricultural policies.
American Psychological Association (APA)
Salim, Yusr Ali& Ahmad, Aidah Fawzi. 2019. Impact of monetary policy on agricultural domestic product in iraq for the period (1990-2014). The Iraqi Journal of Agricultural Science،Vol. 50, no. 2, pp.557-566.
https://search.emarefa.net/detail/BIM-893135
Modern Language Association (MLA)
Salim, Yusr Ali& Ahmad, Aidah Fawzi. Impact of monetary policy on agricultural domestic product in iraq for the period (1990-2014). The Iraqi Journal of Agricultural Science Vol. 50, no. 2 (2019), pp.557-566.
https://search.emarefa.net/detail/BIM-893135
American Medical Association (AMA)
Salim, Yusr Ali& Ahmad, Aidah Fawzi. Impact of monetary policy on agricultural domestic product in iraq for the period (1990-2014). The Iraqi Journal of Agricultural Science. 2019. Vol. 50, no. 2, pp.557-566.
https://search.emarefa.net/detail/BIM-893135
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 565-566
Record ID
BIM-893135