Effects of banking facilities on employment trends in selected provinces of Iran

The purpose of this study is to evaluate the impact of bank facilities on employment. Granting job creation facility is one of the usual methods of government during the first to fifth development plans to dissolve unemployment in Iran. This research is an applied investigation and the statistical population is banking facilities in thirteen provinces. In selection of these provinces it is tried to cover more than seventy percent of the total population of the country.

Data collection included library, scientific and technical tools by which employment is evaluated using explanatory variables of a variety of granted bank facilities (installment sale, deposit loan, housing and other facilities), bank deposits, and gross domestic production (GDP) growth and with domestic panel data are evaluated. The model is based on the research by Craig E. Armstrong, Ben R. Craig, William E. Jackson, and James B. Thomson (2010) entitled “The Importance of Financial Market Development on the Relationship between Loan Guarantees for SMEs and Local Market Employment Rates”. Results show that the installment sales facilities, housing, other facilities, and GDP have a positive impact on job creation, but deposit loan facilities and bank deposits are likely to have a negative impact on job creation.