The Role of Financial Intermediation in Influencing the Productivity of Industrial Facilities in the Iraqi Economy
DOI:
https://doi.org/10.31272/jae.i146.1327Keywords:
Banking intermediation, Productivity, Industrial establishments, The Autoregressive Distributed LagAbstract
The concept of banking financial intermediation refers to managing surplus funds needed by those with deficits. Banking intermediation services have received great attention in economic thought, as there are many viewpoints on the extent of the importance and contribution of intermediation services to the real economy. Therefore, the study aimed to identify the role of banking financial intermediation in influencing the productivity of industrial facilities in Iraq, using econometrics methods and models, specifically the Autoregressive Distributed Lag (ARDL) model, for the period from the first month of 2004 to the twelfth month of 2021. The study found a positive and significant impact of the deposit index on the productivity of industrial facilities in the short and long term and a negative and significant impact of the banking capital index on productivity. The effect of the bank credit index is insignificant, and the tests did not confirm the result of the impact.
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