Examining the effects of Granted facilities to small and medium enterprises on inequality in Iran: the structural vector autoregression approach (SVAR)

Document Type : Original Article

Authors

1 Assistant Professor of Economics at Damghan University

2 teacher/university Ph.D in Economics at University of Isfahan and Head of Risk Department of Omid Entrepreneurship Fund

Abstract

Abstract: Financing is the most important duty and mission of banks towards the economy, and if the optimal allocation of credit resources does not happen, the stability of the macro economy will be damaged and the economy can experience stagnation or inflation. Nevertheless, the available statistics show that the situation of access to financing in Iran is extremely unequal and unbalanced, and the lack of a systematic and dynamic approach in allocating credit to the needs of enterprises has made the allocated facilities unable to play a useful role in improving financing. financial and production status of enterprises. With this explanation, in this study, using the vector autoregression method, the effect of credit facilities to small and medium enterprises on inequality in Iran during the period of 2000-2022 has been investigated. The results showed that the variable of granted facilities to small and medium enterprises could not have a significant effect on inequality in Iran. This issue can be caused by the amount of providing credit resources, the process of granting credits in terms of selecting economic plans and monitoring the consumption of these credits. Also, according to the obtained results, the existing inequality variable has the greatest effect on inequality in the future periods.

Abstract: Financing is the most important duty and mission of banks towards the economy, and if the optimal allocation of credit resources does not happen, the stability of the macro economy will be damaged and the economy can experience stagnation or inflation. Nevertheless, the available statistics show that the situation of access to financing in Iran is extremely unequal and unbalanced, and the lack of a systematic and dynamic approach in allocating credit to the needs of enterprises has made the allocated facilities unable to play a useful role in improving financing. financial and production status of enterprises. With this explanation, in this study, using the vector autoregression method, the effect of credit facilities to small and medium enterprises on inequality in Iran during the period of 2000-2022 has been investigated.

Keywords

Main Subjects

Public Sector Economics Studies

Articles in Press, Accepted Manuscript
Available Online from 16 October 2024

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History

  • Receive Date: 21 July 2024
  • Revise Date: 14 October 2024
  • Accept Date: 16 October 2024

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