Volume 21, Issue 1 (2021)                   QJER 2021, 21(1): 1-28 | Back to browse issues page

‎ 20.1001.1.17356768.1400.21.1.1.9

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Roudari S, Homayounifar M, Salimifar M. The Effect of Social Capital on Non-performing loans from the Private and Public Sectors with Emphasis on Efficiency of Government Expenditure. QJER 2021; 21 (1) :1-28
URL: http://ecor.modares.ac.ir/article-18-44000-en.html
The Effect of Social Capital on Non-performing loans from the Private and Public Sectors with Emphasis on Efficiency of Government Expenditure
Soheil Roudari1 , Masoud Homayounifar * 2, Mostafa Salimifar3
1- Ph.D. in Economics, Ferdowsi University of Mashhad
2- Associate Professor of Economics, economics and administrative sciences Faculty, ferdowsi university of mashhad , homayounifar@um.ac.ir
3- Professor of Economics, Faculty of economics and administrative sciences, ferdowsi university of mashhad
Abstract:   (3200 Views)
In this research, the impact of social capital through influencing the efficiency of government expenditure is investigated using three-stage least-squares model in Iran during 2005: Q1 to 2018: Q2. The effects of exchange rate, stock market index and oil revenues on non-performing loans of public and private sectors are also examined. Results suggest that given the increased efficiency of government expenditure, social capital has a significant negative impact on non-performing loans of public and private sectors. In addition, exchange rate has a significant negative impact on banking system’s receivables from public sector and a significant negative impact on banks’ receivables from private sector. Stock market index has no significant impact on non-performing loans of both public and private sector, since stock market is not liquid enough and has low share in financing businesses. Economic growth has also no significant impact on non-performing loans of both sectors, which can be explained by the impact of improvement in business environment and individuals’ purchasing power on their ability to repay their loans. Thus, by stabilizing economy (controlling the fluctuations of exchange-rate, stock market and so forth) and by improving social capital, it is expected that efficiency of government expenditure is increased and non-performing loans of both sectors is decreased.
Keywords: Oil Revenues, Exchange Rate, Stock Market Index, Non-performing Loan, 3SLS Model
Full-Text [PDF 1318 kb]   (1805 Downloads)    
Article Type: Original Research | Subject: Macroeconomics and Monetary Economics
Received: 2020/06/27 | Revised: 2021/03/21 | Accepted: 2020/10/29 | Published: 2021/03/21
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