Alireza Mirzaie - MSc student, University of Tehran, Farabi campus

This study examines the impact of banking sector variables on economic growth in Iran. Research period is 2009-2019 and Vector Auto Regressive is used as research’s method. The dependent variable is real GDP (Gross Domestic Product) of Iran and Independent variables are banking sector variables include short-term bank deposit rates (BDR), interbank interest rates (IBR), public sector debt to banks (PUDB) and private sector debt to banks (PRDB). The results show that there is a relation between banking sector variables and economic growth in Iran in short and long term. BDR has a positive impact on dependent variable both in the short and long term. Despite BDR, IBR has a negative impact on dependent variable both in the short and long term. PRDB In the short run, had no effect on the dependent variable, but in the long run, it had a positive effect. PUDB In the short run, had no effect on the dependent variable, but in the long run, it had a negative effect.

banking sector, Vector Auto Regressive, economic growth, GDP