Analyzing the Effect of Bank Exchange Contracts on the Value added of the Service Sector in Iran
Document Type : Research Paper
Authors
Economics Dept., Yazd University
Abstract
According to the literature and researches, the method of financing economic activities, including the service and trade sectors, play an important role in facilitating economic growth. In this regard, this study has been written with the aim of investigating the effect of exchange contracts on the value added of the service sector. For this purpose, the variables of facilities granted in the form of exchange contracts to the service sector, per capita labor force capital of the service sector, labor productivity in the service sector, facilities granted by other Islamic contracts to the service sector and the ratio of the real government expenditure to real GDP considered as independent variables. The value added of the service sector is also considered as a dependent variable. The period of investigation is from 1363 to 1398 and has an annual frequency in which data is analyzed using the ARDL regression model. The results show that in the long-run, the variables of per capita labor force capital of the service sector and Islamic exchange contracts facilities have a positive and significant effect on the value added of the service sector. In the short-run, independent variables have a positive and significant effect . However, the per capita labor capital of the services and facilities provided in the form of Islamic exchange contracts had the greatest impact on the value added of this sector, and other Islamic facilities have the least impact.
Keywords
Abduh, M., & Omar, M. A., (2012). Islamic Banking and Economic Growth: the Indonesian Experience, International Journal of Islamic and Middle Eastern Finance and Management, 5, (1), 35-47.
Abduh, M., and Omar, M. A., (2012). Islamic Banking and Economic Growth: the Indonesian Experience, International Journal of Islamic and Middle Eastern Finance and Management, 5, (1), 35-47.
Akbarian, R. and Jokar. K., (2015). The Impact of Islamic Banking on Economic Growth, Journal of Islamic Economics and Banking, 3(7), 7-40.
Dadmarzi, S., (2000). The Concept of Contract in Civil Law, Philosophical and Theological Research, (4) 1, 59-74.
Economic Statistics Reports, (2020). Central Bank of Islamic Republic of Iran.
Fathi Aghababa, M., Azizi, K. and Mahmoudzadeh, M., (2020). Investigating the Effects of Banking Facilities on Economic Growth (Sustainable Approach). Quarterly Journal of Economic Research and Policy, 28 (94), 203-223.
FriedmanŲ M. (1962). The Interpolation of Time Series by Related Series, Journal of American Statistical Association, 57 (300), 729- 757.
Imam, P., & Kpodar, K., (2016). Islamic Banking: Good for Growth? Economic Modelling, 59, 387-401.
Isazadeh, S. and Ahmadzadeh, A., (2009). Investigating the Effect of Institutional Factors on Economic Growth with Emphasis on Governance Institutions, Iranian Economic Research, 13, (40), 1-28.
Jafari Samimi, A., Yahyazadehfar, M. and Najafpour, A., (2016). The Impact of Islamic Banking on Economic Growth in Selected Countries, International Conference on Research and Development in Humanities, Management and Economics.
Jafariah, F. and Davoodi, P., (2014). An Institutional Approach to the Structuring of Power in the Internal Arena to Achieve a Resistance Economy, Quarterly Journal of Planning and Budget, 3 (12), Consecutive, 151-172.
Jahangard, E. and Sarabadani Tafreshi, S., (2014). Investigation of Economic and Social Factors Affecting Tuberculosis in the Provinces of Iran (Dynamic Panel Data Approach), Journal of Economic Modeling, 8 (26), 21-36.
Kalim, R., Mushtaq, A., & Arshed, N., (2016). Islamic Banking and Economic Growth: Case of Pakistan, Islamic Banking and Finance Review, 3 (1), 14-28.
Kalim, R., Mushtaq, A., and Arshed, N., (2016). Islamic Banking and Economic Growth: Case of Pakistan, Islamic Banking and Finance Review, 3(1), 14-28.
Khotijah, S. A., & Iswanaji, C., (2020). Analysis of the Effect of Murabaha Finance in Sharia Banks on the Economic Growth of Agricultural Sector, Journal of Ekonomi dan Keuangan Syariah, 4 (2), 246-259.
Khotijah, S. A., and Iswanaji, C., (2020). Analysis of the Effect of Murabaha Finance in Sharia Banks on the Economic Growth of Agricultural Sector, Journal of Ekonomi dan Keuangan Syariah, 4(2), 246- 259.
King, R. G., & Levine, R., (1993). Finance, Entrepreneurship and Growth, Journal of Monetary Economics, 32 (3), 513-542.
King, R. G., and Levine, R., (1993). Finance, Entrepreneurship and Growth, Journal of Monetary Economics, 32 (3), 513-542.
Lotfalipour, M., Azarinfar, Y. and Mohammadzadeh, R., (2012). Investigating the Impact of Government Expenditures on the Growth of the Agricultural Sector and the Total Iranian Economy, Economics and Agricultural Development, 2 (26), 86-96.
Makinde, H. O., (2016). Effects of Banks Consolidation on Economic Growth in Nigeria (2004-2015), Journal of Emerging Trends in Economics and Management Sciences, 7 (3), 184-196.
Makinde, H. O., (2016). Effects of Banks Consolidation on Economic Growth in Nigeria (2004-2015), Journal of Emerging Trends in Economics and Management Sciences, 7 (3), 184-196.
Mankiw, Gregory, (2004). Macroeconomics, (Translated by Parsaiyan, A. et al.), Tehran, Allameh Tabatabai University Press.
Mehrara, M., Ayin, S. and Hakamollahi, Y., (2019). The Effect of Granted Energy Consumption and Production Growth in Large Iranian Transport Companies (Comparative Study of Iran and Malaysia), Journal of Islamic Economics and Banking, 8 (26), 51-67.
Mohammadnejad, N., Fitros, M. and Masoumi, M., (2015). Analyzing the Relationship between Bank Credit and Economic Growth, Monetary and Financial Economics, 2 (10), 1-21.
Molaei, M., Dehghani, A. and Hosseinzadeh, S., (2015). The Relationship between Facilities and Real Interest Rates of Banks on Economic Growth (Granger, Toda and Yamamato Causality Approach and Dynamic Panel Data), Economic Growth and Development Research, 5, (19), 25-40.
Mousavian, S. and Meysamy, H., (2016). Islamic Banking: Theoretical Foundations-Practical Experiences, Tehran, Monetary and Banking Research Institute.
Mousavian, S., (2005). Evaluation of Contracts and Methods of Granting Facilities in Interest-free Banking, Islamic Economics Quarterly, 5, (19), 45-70.
Mousavian, S., (2006). Interest-free Banking from the Perspective of Shahid Sadr (RA), Islamic Economics Quarterly (6), 21, 71-101.
Mustafa, H. W., (2018). The Effect of Islamic Finance on Economic Growth in Kenya (Doctoral Dissertation, University of Nairobi).
Mustafa, H. W., (2018). The Effect of Islamic Finance on Economic Growth in Kenya (Doctoral Dissertation, University of Nairobi).
Quarterly Reports of Iran's Economy, (2019). Statistical Center of Iran.
Razavi, M. (2014). Islamic Banking in Iran: A History of Performance and Planning, Iran Banking Higher Education Institute Publications, Tehran.
Samsami, H. and Amirjan, R., (2011). Investigating the Effect of Banking Facilities on Value Added in Industry and Mining, Quarterly Journal of Economic Research and Policy, 19 (59), 129-149
Schumpeter J.A., (1934). The Theory of Economic Development, Cambridge, Harvard University Press.
Schumpeter J.A., (1934). The Theory of Economic Development, Cambridge, Harvard University Press.
Seifipour, R., (1389). Empirical Study of the Effect of the level of Financial Development on Economic Growth, Journal of Financial Knowledge of Securities Analysis, 3 (6), 49-70.
Siddique, M. A. & et al, (2020). The Impact of the Islamic Banking Industry on Economic Growth and Poverty Reduction in Pakistan, Conference Paper, Islamabad.
Siddique, M. A., et al, (2020). The Impact of the Islamic Banking Industry on Economic Growth and Poverty Reduction in Pakistan, Conference Paper, Islamabad.
Tongurai, J. & Vithessonthi, C., (2018). The Impact of the Banking Sector on Economic Structure and Growth, International Review of Financial Analysis, 56, 193-207.
Taherpour, J., Mohammadi, T. and Fardi Kalahroudi, R., (2019). The Effect of Distribution of Banking Facilities on Iran's Economic Growth; With Emphasis on Partnership and Exchange Contracts, Islamic Economics Studies, 12 (1), 151-176.
Tongurai, J. and Vithessonthi, C., (2018). The Impact of the Banking Sector on Economic Structure and Growth, International Review of Financial Analysis, 56, 193-207.
)