The impact of bank credit on the productivity growth of industrial sectors in Iran (2001-2011)

摘要

Accelerate the economic growth is one of the main objectives of many countries, so that many other national goals, is set according to this. Therefore, it has always been a question among economists that what factors affect economic growth and how to influence it? A group of endogenous growth theories pays special attention to the relationship between the financial sector especially the banking sector and credit granted by the banking system and economic growth; and has offered some models to demonstrate the interrelationships between innovation and financial issues in the process of economic growth inspired by the theories of Schumpeter. Those economists, who believe that the development of financial intermediaries affects economic growth, argue that the financial system plays the major role in the allocation of resources to more efficient projects. The present study investigates the effect of bank credit as one of the banking sector variables on the productivity growth of the industrial sectors according to ISIC three-digit codes using panel data based econometrics method. The period from 2001 to 2011 is reviewed in this study. The results confirm that there is a significant positive relationship between credit granted to the private sector and productivity growth. The results also show that the structural reforms and the development of the banking system with the growth of credit granted to the private sector leads to productivity growth in the industrial sectors.