Investigating the effect of bank credits allocation manner on regional growth in Iran:Application of quantile regression approach in panel data

In this studyو the effect of bank credit allocation between different economic sectors on the economic growth of Iranian provinces was investigated. For this purpose, the provincial data for the period 2015-2020 based on the maximum available data and the method of estimating quantile regression in panel data were used. In this regard, the results showed that in the initial quantile (0.05) the amount of credits to the agriculture, business, industry and services sector had a positive effect on growth and also credits to the housing sector had a negative effect on the economic growth of the provinces. In the middle quantile (quantile 0.5), lending to the agricultural and business sectors has had a positive effect, and lending to the housing and services sector has had a negative effect, as well as the effect of the industry sector on economic growth. Finally, in the upper quantile (0.95 Credits to the agricultural and business sectors have a positive and significant effect, and credits to the industrial sector have a negative effect, as well as the effect of credits in the housing and services sector no significant effect on provincial economic growth. This indicates the need to redefine credit policies and prevent the diversion of these resources. Regarding the effect of capital, the results showed that the effect of human capital and physical capital on the economic growth of the provinces is positive and significant, and regarding the effect of physical capital in high quantile, this effect is more. Finally,