Document Type : ORIGINAL ARTICLE
Authors
1 1. M.Sc Student., Faculty of Economic and Management, Tabriz University, Tabriz, Iran
2 2. Associate Prof., Faculty of Economic and Management, Tabriz University, Tabriz, Iran
3 3. Prof., Faculty of Economic and Management, Tabriz University, Tabriz, Iran
Abstract
Although different economic schools have different views on the role of money in the economy, empirical evidence and the results of many previous studies indicate that monetary policies can affect production in various ways. Given the important role of banks, as financial intermediaries, in financing enterprises, examining the role of bank credits in production and value added of enterprises is of great importance. Therefore, the aim of this study is to examine the effect of the role of bank credits on the effect of monetary policies on the value added of the industrial and mining sectors of the provinces of Iran. For achieve this purpose, we used Generalized Moment Method) GMM with panel of 31 provinces during the period (2011-2021). First we survey the effect of monetary policies on bank credits and then the role of bank credits on the value added of this sector. The results of this study show that an increase in bank interest rates causes a decrease in given credits, while bank deposits and the number of bank branches cause an increase in credits. Also, bank credits have a positive and significant effect on the value added of the industry and mining sector, and inflation has a negative effect on the value added of the industrial section. Finally, the overall effect of monetary policy (through bank credits) on the value added of the industrial provinces of Iran is negative.
Keywords
Main Subjects
)