s
hamid zolghadr; Hossein Asgharpur; Mohsen Purebadolahan; Behzad Salmani; Asadollah Farzinvash
Abstract
Banks due to their ownership structure have specific objective in granting credits. Hence, Ownership structure can be impact on economic growth by Influencing banks' lending behavior. Purposes of this study are investigating the role of bank ownership in the impact of bank credit on economic growthwith ...
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Banks due to their ownership structure have specific objective in granting credits. Hence, Ownership structure can be impact on economic growth by Influencing banks' lending behavior. Purposes of this study are investigating the role of bank ownership in the impact of bank credit on economic growthwith considering income level of provinces. This research is divided banks into state and private also divided provinces into two groups of high and low income. Econometric model of this research is estimated using panel data in 31 provinces during of 2006-2015. Descriptive analysis results showed that average of total credits each year, 21 percent by private banks and 79 percent by state-owned banks is paid. The findings of the model estimation indicate that the impact of both types of banks credit on provinces' economic growth was higher in low income levels compared to provinces with high income levels. The results of the tests conducted to measure the difference in the impact of two types of banks in each region indicated that state banks, with a significant difference compared to private banks, had a greater effect on economic growth in lower-income provinces. But the difference in the effectiveness of two types of bank credit on economic growth in provinces with high income level is not significant. Therefore, structure of bank ownership has effective role on the impact of credits on economic growth due to the income level of the regions.
