The effect of bank facilities and deposits on income inequality in Iranian provinces

Alavirad, Abbas; VakiliZarch, MohammaHassan; Totonchi, Jalil; Dehghan Tafti, Mohammad Ali

doi:10.22096/esp.2022.136462.1413

The effect of bank facilities and deposits on income inequality in Iranian provinces

Document Type : Original Article

Authors

Abbas Alavirad ¹

MohammaHassan VakiliZarch ²

jalil totonchi ³

Mohammad Ali Dehghan Tafti ³

¹ Associate Professor, Department of Economics, Islamic Azad University, Yazd Branch, Yazd, Iran.

² PhD Student, Department of Economics, Islamic Azad University, Yazd Branch, Yazd, Iran.

³ Assistant Professor, Department of Economics, Islamic Azad University, Yazd Branch, Yazd, Iran.

10.22096/esp.2022.136462.1413

Abstract

One of the most important tasks in the field of government when intervening in economic systems is to try to distribute revenues more appropriately among different segments of society. The development of the financial system in two ways can affect this process. One of these ways is through the impact of the financial system on economic growth and how it is distributed among economic agents. In addition, financial development in terms of how to create investment opportunities for different segments of society will be able to influence the distribution of income. The aim of the present study was to investigate the functioning of the banking system in terms of facilities and deposits on the distribution of income inequality in the provinces of Iran. For this purpose, in the present study, quantitative regressions have been used as a suitable method in estimating income inequality models. The results of the period during 2011-2018 for 31 provinces of Iran showed that there is a positive and significant relationship in all deciles between the balance of facilities granted by banks and deposits of the banking system separately on income inequality. Therefore, it is recommended to pay serious attention to the issue of the impact of banking system performance factors on income inequality distribution in reforming the banking system.

Keywords

Income Inequality

Facilities granted by banks

bank deposits.Trade Openness

Quintile Panel

Abu Nouri, Esmail, Ali Souri, & Mahboubeh Farahati. "The Relationship between Unemployment, Income Distribution and Effective Demand in Iran: The SVAR Approach to the Poskins", Economic Growth and Development Research 8, no. 29, (2017): 1-20. [In Persian]

Ashrafipour, Mohammad Ali. "Effects of financial development on poverty and income inequality in Iran", the first regional conference of researches and new solutions in accounting and management, (2013): 24-33. [In Persian]

Afshari, Zahra, & Sama Azari. "Financial Development, Income Inequality and Poverty in Iran", Journal of Economic Development Policy 5, no. 1, (2017): 9-28. [In Persian]

Izad Khasti, Hojjat. "The effect of good loan facilities on income distribution in Iran", Journal of Irans Economic Essays 14, no. 30 (2018): 30-50. [In Persian]

Piraei, Khosrow, & Baligh, Nafiseh. "The relationship between financial development and income inequality in Iran", The Economic Research 15, no. 3 (2015): 1-21. [In Persian]

Jaberi Khosroshahi, Nasim, Mohammad Reza Mohammadvand Nahidi, & Davood Norouzi. "The Effect of Financial Development on Income Inequality in Iran", Economic Growth and Development Research 2, no. 6, (2012): 179-208. [In Persian]

Dadgar, Yadoollah, & Zahra Nik Nemat. "Applying DEA in analyzing Iranian economy (Tejarat BankDistricts)", Journal of Irans Economic Essays 4, no. 7 (2007): 11-54. [In Persian]

Dehmardeh, Nazar, & Zeynab Shokri. "The Effects of Financial Development on Income Distribution in Iran", Quarterly Journal of Economic Research and Policies 18, no. 54 (2010): 147-164. [In Persian]

Dizji, Monira, & Mohadeseh Ahangari Gargari. "Impact and financial development on income distribution in developed and developing countries", Financial Economics 9, no. 33 (2015): 104-75. [In Persian]

Rafat, Batool, & Elaheh Jazizadeh. "Effect of Financial Development on Income Distribution in Iranian Provinces", The Economic Research 16, no. 3 (2016): 29-46. [In Persian]

Aligholi, Mansoureh. "Impact of Agricultural Credit on Income Distribution in Iran", Agricultural Economics Research 9, no. 36 (2017): 67-84. [In Persian]

Molana, Seyyed Masih, Seyyed Abbas Najafizadeh, Gholam Ali Haji, & Ahmad Sarlak. "The role of financial development in poverty reduction in Iran using the Principal Component Analysis Method (PCA)", Economic Policy 11, no. 22, (2019): 127-158. [In Persian]

Mehregan, Nader, & Mehdi Khosh Akhlagh. "The impact of Gharz al-Hasaneh on Income Distribution in Iran (By Using Index of Income Relative Share of Deciles)", Islamic Economics & Banking 5, no. 16, (2016): 119-193. [In Persian]

Send comment about this article

Name *

Enter Name.

Email Address *

Enter a valid email address.

Affiliation *

Enter a vaid affiliation.

Comments *

Enter comments (At leaset 10 words)

Security Code *