Sociological explanation Effects of Macroeconomic Variables on the Development of Banking Sectot

Document Type : Original Article

Authors

1 PhD student in Economics, Abhar Branch, Islamic Azad University, Abhar, Iran.

2 Assistant Professor, Department of Economics, Abhar Branch, Islamic Azad University, Abhar, Iran.

3 Department of Economics, Abhar Branch, Islamic Azad University, Abhar, Iran

Abstract

The main purpose of this study is to explain how the variables of real GDP growth rate, investment, inflation rate, degree of economic openness and macroeconomic policy uncertainty as macroeconomic variables affect the share of appropriations allocated to the non-governmental (private) sector. The title of the index of development of Iran's banking sector during the years 1397-1397. To achieve this goal, first using the Gregory-Hansen co-integration approach as one of the appropriate co-integration methods in terms of structural failure, the existence of a long-run relationship between model variables was tested and then the experimental research model was estimated by dynamic least squares method. . The results of model estimation showed that there is a long-run equilibrium relationship between variables and inflation rate and macroeconomic policy negative impact and variables of the degree of openness of the economy, real GDP growth and private sector investment have a positive and significant effect on the share of allocated credit. To the non-governmental sector of Iran during the study period. Based on the research findings, it is suggested that economic policy makers, by controlling the general level of prices and inflation rates and creating stability in the macroeconomic environment, provide the ground for improving the facilities granted to the private sector.

Keywords

Political Sociology of Iran
Volume 5, Issue 8
October 2022
Pages 611-674

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