Causal Relationship Between Saffron Exports and Agricultural Gdp

It has been found that one percent change in saffron export rate leads to much more than one percent change in agricultural value added growth (Mehdi & Reza, 2012). For that reason, saffron export is considered as a significant aspect of value addition in agriculture and economic growth. Value additions in the agriculture sector is a function of the rate of absorption of the export sector. It means that if the incomes attracted from the export sector can be spent to vital and productive investments in general and agriculture in particular, it will undoubtedly generate value-added growth in the economy. Therefore, the government should promote export-led growth.