Survey Simultaneous Effect of Deposit and Loan Rate on Economic Growth in selective Developing Countries

Economic growth is the main aim of policy makers and economists. Interest rate is one of the effective factors such as expected inflation and… on economic growth. In this paper, we use from panel data model for period of 2004-2017 for 18 developing countries. Results reveal that bank's operations in these countries are not well. According to our results, Loan's rate has positive effect and deposit's rate has negative effect on economic growth in our countries in our period. Estimation results reveal that one percent increases in loan's rate is caused to 0.048 rises in economic growth and one percent rise in deposit's rate is caused to 0.23 decreases in economic growth in our sample.