The Role of Facilities Offered by Banks in Spatial Development (The case of city centers in the province of Ilam)

Spatial development of the city centers across the nation has started since a decade ago and is quickly increasing and the role of financial factors, especially facilities offered by banks, is not ineffective in making it happen much faster. Thus, in the current research, for a 10-year period (from 2001 till 2011), the role of different methods of financing, e.g. facilities offered by banks, governmental supports, and municipalities income, in spatial development of the city centers of Ilam province, the Autoregressive Distributed Lag (ARDL) Econometrics Model was mentioned. The results indicated that Ilam enjoys the highest level of structural development coming together with municipality income and had received the maximum amount of governmental support. The results of model evaluation refer to the fact that from among different methods of financing spatial development, governmental supports and facilities offered by banks have a significant positive effect on spatial development of the city centers of the province of Ilam, while municipalities income fail to have such an effect.