The Impact of Inflation on Private Investment in the Agricultural Sector in Iran


Volume 4, Issue 3, Number 1, Pages 16-27, Published Online July 20, 2016

Full-Text PDF


Nasim Masoudi


Investment and capital accumulation resulting from it, is the key to economic growth in any country. Private sector investment is not only a component of aggregate demand, but also more importantly it is a source of growth and employment opportunities in the future. The agricultural sector is one of the most important economic sectors of the country; therefore investment in this sector is of particular importance. In this regard, it should be noted that private sector investment is an important parameter in the development of the agricultural sector. One of the important variables affecting private investment is inflation. In this paper, we are investigating the impact of inflation on private investment in agriculture of Iran. For this purpose, using time series data (2012-1972) and using Self-explanatory with extensive Lag (ARDL), we discussed estimating the private investment function in agriculture. The results showed that growth of value-added has a positive relationship with inflation of agricultural products which suggests that in inflationary conditions of investment in agricultural sector, prices will increase by taking advantage of this increase in gains. Thus, the increase of wholesale prices of agricultural products compared to wholesale price of all goods is an incentive for agricultural investment rather than a limitation. Change in the balance of the banks has a positive relationship which shows that banks performance was in line with the injection of resources towards productive activities and the real exchange rate had a negative relationship with investment.


Inflation, Private investment, Agricultural sector, ARDL method.


Allen, G. C. (1981). “A short economic history of modern Japan”. 4th ed. London: acmillan.
Bank, J., and B.Wilpert. (1983). “What’s so special about quality circles”. Journal of General Management 9 (1): 21-37.
Brennan, M and wall, A.l, (2005), “Academic entrepreneurship, assessing preferences in nacent entrepreneurs”, Journal of small business and development, 12 (1) pp.307-322.
Carayannis, Elias G, David F.J Campbell (2010). “Triple helix, Quadruple helix and quintuple helix and how do knowledge, innovation and the environment relate to each other? A proposed framework for a trans-disciplinary analysis of sustainable development”. Vol 1, pp.41-69.
Caraynnis, Elias G., David F.J Campbell (2009). “Model 3 and Quadruple Helix”: toward a 21 st century fractal innovation ecosystem. International journal of technology management. Vol 46, pp.201-234.
Danilda, Inger malin lindberg, britt-marie torstensson (2009). “Woman resource centres. A Quattro helix innovation system on the European agenda”. pp: 20.
Etzkowitz, H. (2008), “the Triple Helix: University-Industry-Government Innovation in action”, Routledge, London.
Etzkowitz, H. and Loet L. (2008), “the dynamics of innovation: from national systems and model2, to a tripe helix of university: industry-government relations” research policy, Vol.29. No, 2 pp.109-23.
Etzkowitz, Henry, et al. (2000). “The future of the university and the University of the Future. Evolution of ivory tower to entrepreneurial paradigm.” Research policy, 29. P.313.
Etzkowitz, Henry. (1998) “The norms of entrepreneurial science: cognitive effects of the new university- industry” Research policy 27. P 823.
Etzkowitz, Henry. (1998) “The second academic revolution and rise of entrepreneurial science” IEEE Technology and society. P.18-22.
Etzkowitz, Henry; LEYDESDORFF, Loet. (1996). “Universities and the global knowledge economy: a triplex helix of University-Industry-Government relations”. Book of abstracts. Amsterdam:University of Amsterdam, 1996.
Franklin, S.J, et al. (2001). “Academic and Surrogate Entrepreneurs in University Spin- out Companies.” Journal of Technology Transfer, 26,127-141.
H.H and Jaarillo J.C. (1990). “A Paradigm of entrepreneurship” stevesnson management. p11.
Siegel D., Wright M, Ensley M and Locket A., (2005). “The cerati on of spin-of firms at public research instituits: Managerial and policy implications”, research policy, 34 (7), pp.981-993
Maital, S. (1984). “The economic analysis of the Japanese firm”. Sloan Business Review 26(1): 77-78.
Maital, S. (1984). “The economic analysis of the Japanese firm”. Sloan Business Review 26(1): 78-91.
OECD. (2001). “Knowledge Management in the learning society”.
Plonski A. (1996). “Beyond triads: an institutional approach to knowledge-based economic development” paper presented at the triple helix conference, Amsterdam.
Kirby D, Guerrero-cano, M and Urbano D, (2006), “A Litrature Review on enteperneurial universities: An Instituional Approach”, the 3rd conference of pre-communications too congresses, Business Economic Department, Autonomous University of Barcelona.
Stanworth, J., Blythe, S., Granger, B., & Stanworth, C. (1989). “Who becomes an entrepreneur?” International Small Business Journal, 8, 11–22.
Wallace MJ, Szilagy AD. (1987). “Entrepreneurship and Management” strategic Management journal. P17.
Warner, M. (1996). “Total quality management. In International encyclopedia of business andmanagement”, vol. 5, edited by M. Warner, 4884-901. London: Thomson Business Press.

Womack, James P., et al. (1990). “The machine that changed the world”. New York: Rawson Associates.
Kiyakajoori, Davood, Azad, Hajar and Azad, Mostafa. (2012). “University entrepreneurship education and its role in creating and developing Small Businesses by SMEs management knowledge”, National Conference on entrepreneurship and small business management knowledge, Tehran. (In Persian).
GolMohammadZadeh, Aida, (2013). “Exploring the impact of development of industry and academia on the rise of entrepreneurship in Tehran University”. Mater thesis. Payam Noor University, Tehran Branch. (In Persian).
Taheri, Shahnam. (1995). “Exploring collaboration between industry and academia in developing countries”. The fourth seminar on the relationship between industry and academia. (In Persian).
Naghavi, Seyed Ali and Fallah, Hamed. (2012). “Exploring the relationship between academia and industry with an entrepreneurial approach”. National Conference on Entrepreneurship and Management Knowledge-based businesses. (In Persian).
Hamrahi, Morteza, Yazdian, Vahid and Rahmani, Mojdeh. (2002), “Communication solutions to government, industry and academia”. Sixth Congress of cooperation between government, academia and industry for national development. (In Persian).



1 Comment

Post a Comment



Events 2016


Events 2016