The Nonlinear Relationship between Bank Credits and Agricultural Employment in Mazandaran Province

Mazandaran province is one of the most important agricultural areas in Iran. Researches findings show that the role of bank credits is really important due to the lack of available funds in agricultural sector. In this study, the relationship between allocation of Agricultural Bank credits of Iran as professional bank section and agricultural employment was studied in the Mazandaran province based on a threshold error correction model during 1981-2011. The results show that the impact of credits on agricultural employment has been significantly different in upper and lower level of estimated threshold. The estimated threshold is about 44 percent for bank credits. The impact of bank credits on agricultural employment will be significantly negative when they exceeds from the threshold point. The results confirm transfer of capital from agriculture to other sections, resulting in a lack of integrated management for credit allocation system.


Issue Date:
Dec 15 2014
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/234395
Published in:
International Journal of Agricultural Management and Development (IJAMAD), Volume 04, Number 4
Page range:
309-312
Total Pages:
4




 Record created 2017-04-01, last modified 2017-08-29

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