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Analyzing the Effect of Financial Facilities Awarded by Banking System in Qazvin Province on the Growth of Main Economic Sectors
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Fahime Lezgi *   , Alireza Amini , Ali Haghighat |
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Abstract: (18649 Views) |
| Ali Haghighat, M.A. Economics, and Member of the Organization for Economic Affairs and Finance, Qazvin Province,
Economic Development in any country would be impossible without a developed financial system. The proper role of banking system in providing financial facilities may overcome financial problems in productive sectors in the Province. An examination of the banking performance during the period of 1376 to 1384 shows that the growth in production has not been in line with the increased banking facilities, and the banking system is more inclined to award loans based on Islamic contracts with fixed payments. The effect of facilities provided by banking system in Qazvin Province on economic growth in main sectors are carried out based on the Chicago School and is tested using the Panel Data model. The results show that the relationship between production and banking facilities is significant while being very weak and negative. The policy recommendation derived from this research is that the level of per capita banking facilities to productive sectors should be increased in order to enhance the possibility of control, supervision and the effectiveness. Moreover, in order to support productive sectors financially, the banking system can play a significant role in sectoral economic development by giving more emphasis on Islamic Participative Contracts. |
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| Keywords: Banking Facilities, Islamic Contracts, Qazvin Province GDP, Panel Data |
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Type of Study: Research |
Subject:
General
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