The Impact of Private Banking on the Economic Production in Iran
In some economic theories emphasizing the positive relationship between financial and real sector development in economy, privatization of financial markets and institutions and increasing private sector share is the dominant approach to financial development. However, private banks performance in s...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2021-03-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_12304_56003af4c00e88a5339a72255263120d.pdf |
| _version_ | 1797369336943345664 |
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| author | Farshad Momeni Abbas Shakeri Javad Taherpoor Behnam Ezati Ekhtiar |
| author_facet | Farshad Momeni Abbas Shakeri Javad Taherpoor Behnam Ezati Ekhtiar |
| author_sort | Farshad Momeni |
| collection | DOAJ |
| description | In some economic theories emphasizing the positive relationship between financial and real sector development in economy, privatization of financial markets and institutions and increasing private sector share is the dominant approach to financial development. However, private banks performance in some countries have shown different results compared to the goals had been set. Lack of proper economic and institutional environment has led to adverse results of private banks. Considering mentioned issues, this study aims to assess the impact of private banking on the economic growth rate in Iran based on the seasonal data form 2003 till 2018 using Autoregressive Distributed Lag (ARDL) technique. Results of the study have shown that financial development has a positive impact on the growth rate of economy, while, as the market share of private banks has increased, it had a negative effect on the economic growth. The main cause of this negative relationship is undesirable institutional environment which private banks are working in. Therefore, preparing suitable institutional framework is a condition to gain the private banks’ advantages. Central bank constant supervision alongside the enforcement authority prohibiting private banks from managing economic firms and the presence in the alternative markets are the main preconditions. |
| first_indexed | 2024-03-08T17:45:18Z |
| format | Article |
| id | doaj.art-c3b3fd355f46446bbdc6d512cd6612eb |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:45:18Z |
| publishDate | 2021-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-c3b3fd355f46446bbdc6d512cd6612eb2024-01-02T10:29:59ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452021-03-012686104210.22054/ijer.2020.47094.79712304The Impact of Private Banking on the Economic Production in IranFarshad Momeni0Abbas Shakeri1Javad Taherpoor2Behnam Ezati Ekhtiar3Professor, Economics, Allameh Tabataba’i University, Tehran, IranProfessor, Economics, Allameh Tabataba’i University, Tehran, IranAssistant Professor, Economics, Allameh Tabataba’i University, Tehran, IranPh.D. Student, Economics, Allameh Tabataba’i University, Tehran, IranIn some economic theories emphasizing the positive relationship between financial and real sector development in economy, privatization of financial markets and institutions and increasing private sector share is the dominant approach to financial development. However, private banks performance in some countries have shown different results compared to the goals had been set. Lack of proper economic and institutional environment has led to adverse results of private banks. Considering mentioned issues, this study aims to assess the impact of private banking on the economic growth rate in Iran based on the seasonal data form 2003 till 2018 using Autoregressive Distributed Lag (ARDL) technique. Results of the study have shown that financial development has a positive impact on the growth rate of economy, while, as the market share of private banks has increased, it had a negative effect on the economic growth. The main cause of this negative relationship is undesirable institutional environment which private banks are working in. Therefore, preparing suitable institutional framework is a condition to gain the private banks’ advantages. Central bank constant supervision alongside the enforcement authority prohibiting private banks from managing economic firms and the presence in the alternative markets are the main preconditions.https://ijer.atu.ac.ir/article_12304_56003af4c00e88a5339a72255263120d.pdffinancial developmentbanks privatizationprivate bankingeconomic growth |
| spellingShingle | Farshad Momeni Abbas Shakeri Javad Taherpoor Behnam Ezati Ekhtiar The Impact of Private Banking on the Economic Production in Iran فصلنامه پژوهشهای اقتصادی ایران financial development banks privatization private banking economic growth |
| title | The Impact of Private Banking on the Economic Production in Iran |
| title_full | The Impact of Private Banking on the Economic Production in Iran |
| title_fullStr | The Impact of Private Banking on the Economic Production in Iran |
| title_full_unstemmed | The Impact of Private Banking on the Economic Production in Iran |
| title_short | The Impact of Private Banking on the Economic Production in Iran |
| title_sort | impact of private banking on the economic production in iran |
| topic | financial development banks privatization private banking economic growth |
| url | https://ijer.atu.ac.ir/article_12304_56003af4c00e88a5339a72255263120d.pdf |
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