Subscribe

Subscribe to our Newsletter and get informed about new publication regulary and special discounts for subscribers!

ILSHS > Volume 72 > The Role of Current Banking System in the Growth...
The Role of Current Banking System in the Growth of Industrial Sector in Isfahan Province (Iran)
< Back to Volume

The Role of Current Banking System in the Growth of Industrial Sector in Isfahan Province (Iran)

Full Text PDF

Abstract:

Studying the function of banks is crucial because their vigorous role in the economy seems to be a subject of immense importance. In the present study, we analyze and study the role of whole banks, commercial banks and specialized banks between 2002 and 2012 in Isfahan, based on the growth of value added approach in the industrial sector. In order to investigate this matter, we have estimated three extinction panels for the whole banking system, specialized banks and commercial banks in Eviews 9. Based on the results it can be argued that in the panels of whole banks and specialized banks, payment facilities have a positive and meaningful impact on the growth of value added in all three sectors of the economy, but in the panel of commercial banks, only banking facilities on a 10 percent level have a positive and meaningful impact on the growth of value added in the industrial sector. As a result, we can conclude that specializing the bank's activities can have a positive effect on the growth of value added in various sectors of the economy.

Info:

Periodical:
International Letters of Social and Humanistic Sciences (Volume 72)
Pages:
45-53
DOI:
https://doi.org/10.18052/www.scipress.com/ILSHS.72.45
Citation:
H. Abrishami and M. Saboji, "The Role of Current Banking System in the Growth of Industrial Sector in Isfahan Province (Iran)", International Letters of Social and Humanistic Sciences, Vol. 72, pp. 45-53, 2016
Online since:
August 2016
Authors:
Hamid Abrishami, Masoud Saboji
Keywords:
Agriculture Sector, Commercial Banks, Industrial Sector, Panel Data, Services Sector, Specialized Banks, Value Added
Export:
RIS, BibTeX, Text
Distribution:
Open Access

Creative Commons License
This work is licensed under a
Creative Commons Attribution 4.0 International License

References:

[1] J. A. Schumpeter, O. Redvers, Theorie der wirtschaftlichen Entwicklung. The Theory of Economic Development. An inquiry into profits, capital, credit, interest, and the business cycle.. Translated.. by Redvers Opie, Transaction Publishers, New brunswick (U.S.A. ) and London (U.K. ), (1934).

[2] R. I. McKinnon, Money and capital in economic development, Brookings Institution Press, Washington, D.C., (1973).

[3] R. Levine, Financial development and economic growth: views and agenda, J. Econ. Lit. 35 (2) (1997) 688-726.

[4] D. W. Diamond, Financial intermediation and delegated monitoring, Rev. Econ. Stud. 51 (3) (1984) 393-414.

[5] R. E. Lucas, On the mechanics of economic development, J. Monetary. Econ. 22 (1) (1988) 3-42.

[6] R. C. Merton, The financial system and economic performance, Springer, (1990).

[7] H. Furqani, R. Mulyany, Islamic banking and economic growth: Empirical evidence from Malaysia, J. Econ. Co. Dev. 30 (2) (2009) 59-74.

[8] A. Franklin, E. Carletti, The Roles of Banks in Financial Systems, A Berger, P Molyneux & J Wilson (Eds), Oxford Handbook of Banking. (2008).

[9] M. O. Odedokun, Supply-leading and demand-following relationship between economic activities and development banking in developing countries: an international evidence, Singapore. Econ. Rev. 37 (1992) 46-58.

[10] R. G. King, R. Levine, Finance and growth: Schumpeter might be right, The quarterly journal of economics. (1993) 717-737.

[11] R. Levine, Finance and growth: theory and evidence, Handbook of economic growth. 1 (2005) 865-934.

[12] W. Green, Econometric Analysis, third ed. Upper Saddle River, NJ.: Prentice-Hall, (1997).

[13] D. N. Gujarati, Basic Econometrics, forth ed, McGraw-Hill, New York, (2003).

Show More Hide