Analysis of the relationship between bank entrepreneurship and economic growth in Iran

Document Type : Original Article

Authors

1 PhD student in Monetary Economics, University of Justice, Tehran, Iran.

2 Associate Professor of Economics, Kharazmi University, Tehran, Iran.

Abstract

Today, banking and financial intermediation is one of the most important economic sectors. Banks and financial and credit institutions facilitate trade and commerce by organizing and directing receipts and payments and promoting markets and economic growth and prosperity. Banks' involvement in Banks ownership, since the banking system is financed in Iran, will have adverse consequences on economic growth and it is not unreasonable to return to existing factors such as corporations. The main purpose of the present study is to investigate the impact of banks 'performance as well as Banks ownership on the Iranian economy. The present study is an applied research in terms of purpose-based classification; in terms of method, it is a descriptive-correlational research based on regression analysis using panel data. Historical information is also used to test hypotheses in the present study, so the design of this study is quasi-experimental (post-event). In this study, data on 20 sample banks over a period of 18 years between 1380-97 were analyzed to investigate the relationship between variables to test the research hypothesis. The activity of banks and especially Banks ownership affect economic growth and decrease the economic growth of the country.

Keywords