Agricultural sector is one of the most important sectors of Iran economy that accounts about twenty five percent of Iran's GDP Since providing people for necessary food and food security is considered as one of the government's main and important duties, the growth and development of agricultural sector have always been one of politicians and economists focal points here in Iran. Thus, the government plans and pays expenditures to develop this sector. Ths article studies the effects of government's expe1ditures on the value added of agricultural sector to determine the effects of each part of these expenditures on the sector.
We, first, introduce our model for studying the effects of the government's expenditures on the value added of agricultural sector during the periond 1971-1999 (1350-1378), and then, estimate this model by 3SLS method. This model has been designed based on a simultaneous equations system and mutual effects of the variables.
Finally, according to this model and its estimated coefficients, it is concluded that the most effective variable on the value added of agricultural sector.is the government's expenditures for research and training, and the expenditures for constructive costs are in the second rank. The current expenditures of government and paid subsidiaries to the producers in the agricultural sector have no statistically meaningful effect on the value added of the sector. Therefore, according to the conclusions of this study, it is proposed to the government to increase its expenditures for research and training in agricultural sector to develop the sector more effectively.