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Growth is agriculture production has proven a powerful instrument for
developing countries to promote economic growth, development, and poverty
reduction. An addition one of the factors that plays important role in improving the
value -added in agriculture is government expenditure in this section. Despite the
significant role agriculture growth plays in the gross national product and poverty
reduction in country and effects have government expenditure on the value -added in
agriculture the amount of expenditure is not beyond 6 percent during period of
study. Agriculture is main job of rural aria and unfortunately majority of population
in this aria live under poverty line. In this essay try to inquiry effects government
expenditure in agriculture sector on rural poverty. Then model presented and it
estimated with 2SLS method. Final results in this essay show growth in government
expenditure lead to increase agriculture value -added and so decrease poverty in
rural aria in country.
JEL Classification: 013, Q18.