In collaboration with Payame Noor University and Iranian Association for Energy Economics (IRAEE)

Document Type : ORIGINAL ARTICLE

Authors

1 Ph.D. Student, Department of Agricultural Economics, Agricultural Faculty, Payame Noor University, Tehran, Iran

2 Assistant Profesor, Department of Agricultural Economics, Agricultural Faculty, Payame Noor University, Tehran, Iran.

Abstract

The agriculture sector has still a significant share of Iranian economy. Therefore, job creation in agriculture sector is important. For this purpose, it is necessary to identify the determinants of agricultural growth. One of these factors is bank credit that According to some economic theories, it increases employment. Some economists believe that the type of bank ownership (state or private) impact on this relationship. Some believe that the credits of state banks cause more jobs but the others disagree. Therefore, it is necessary for researches to answer these questions: What role does the type of ownership of banks play in the effectiveness of bank credits? In this regard, the study aims to examine the impact of bank credit on agricultural employment emphasized the role of bank ownership. For this purpose, the ARDL and Fuzzy-ARDL method is used. The used quarterly data cover winter 2009 to spring 2018. The findings of the research show that the overall effect of bank credits is positive, but the credits granted by state banks have a greater impact on the employment of the agricultural sector compared to the credits of private banks. This finding is in accordance with the opinion of the advocates of state interference in granting bank credit. In addition, investment has a positive effect and wage has a negative effect on employment.

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Main Subjects

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