The effect of bank facilities granted on the growth of value added in the industrial sector in Iran مقاله

خلاصه ماشینی:

The Effect of Bank Facilities on the Growth of Value Added in the Industrial Sector in Iran* Roya Seifipour** Financing is one of the major issues that producers and investors face, and the banking system can play an effective role in providing short-term liquidity for manufacturing enterprises. For empirical testing, a vector autoregression model has been used, which shows that fixed investment and credits provided to the mining and industrial sector have a long-term and positive relationship with the growth of value added in the industrial sector. Given the need of industries for financial resources, banks proceeded to expand their granted facilities to this sector, which had a 62 percent increase compared to the previous year and reached 8. In the year 74, with the continuation of the economic adjustment policy in this sector, which included the relative provision of resources, stabilization of the exchange rate, liberalization of prices, and support for producers and exporters of industrial and mining goods, and also the reaching of large-scale industrial projects into operation and having a vast domestic market, a relative prosperity was caused such that the value added of this sector had a growth equivalent to 8. (Table 3) The banking system also, in order to strengthen the government's policy of supporting industrial and mining investments, the completion of priority projects, and also projects in deprived areas, increased the volume of facilities granted to the industry and mining sector, and the amount of credits granted to this sector also reached 4246 billion Rials with a growth equivalent to 8.