Effects of Banking Facilities on Private Sector Investment, Given the Specifications of the Iranian Banking System

In this research, a model is designed to assess the effect of banking facilities over private sector investment. In this model, private investment is a function of non-oil GDP, and with a time lag, of import of capital goods, investment of public sector and the real facilities granted by the banking system to the private sector. The effects of the model indicate a meaningful effect of the real facilities to the private sector. Meanwhile, the model is tested for its ability to explain independent variables and complies with the real values of the variable in the assessed years with a 5% error level.JEL: G32 E22 G11, G24 O16 R42