Search

This study aims to estimate the influencing degree of banking credits on the provinces gross domestic product (PGDP) during 2000-2010 and to determine whether this variable has positive &significant effect on the provincial products. Based on this, in order to test the hypotheses, Panel Data method has been used & the results gained from Chow & Hausman test indicate the superiority of fixed effect method for estimating of models. This study-driven results show that first, banks credits have positive effect on the PGDP & the elasticity of production to credits is smaller than unit. Second, banks credits in agricultural, services & construction sectors have positive effect on provincial products unlike industry& mining sectors. Third, total, consumption & capital expenditures of government have had positive effect on provincial products so that the size of consumption expenditure effect is bigger than that of capital expenditure. [ABSTRACT FROM AUTHOR]