bank credits and other determinants of business environment in iran

bank credits affect employment through providing investment opportunities for firms and creating jobs for applicants. this needs، of course، an efficient financial system in the country to manage properly financial resources in order that the firms can access to the relevant economic effects of employment and growth.the performance of banking is thus a major determinant of employment and business environment affecting importantly other economic sectors. more specifically، credits devoted to a specific sector may affect indirectly economic activities of other sectors. this development may cause a diversified range of job opportunities in the economy.this study examines the effects of bank credits and other macro-determinants on employment of the iran's economy including industrial، agricultural and services sectors over 1981-2006. accordingly، we specify a regression system for such sectors and estimate related equations by the sur (seemingly unrelated regression) method. empirical results provide a situation to analyze various effects of real bank credits on employment and development of business environment in the iranian economic sectors.