Document Type : Research Paper
Authors
1 Assistant Professor of Economics, Ferdowsi University of Mashhad
2 Master of Economics
Abstract
This paper has been extracted from a research project entitled: " A Survey of the Effects of Bank' Credits on Private Investment in Iran and Explanation of Its reasons." In order to do this, we studied the, neoclassics theories of investment. Then, keeping in mind the particular conditions of the country an appropraite model for private investment of Iran have designed in which, the investment is a function of governmental investment, gross national product(GDP), inflation rate and banks credits to private sector.
The results (from the estimation of the model) indicated that the credits have had a significant effect on the private investment during the period under study. Monetary and credit policies, structural factors and substitution of money and capital are the main reasons of the positive relationship.
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