The Effect of Banking on Value Added for Services Sector in Iran

One of the most important sectors of economic activity in the countries is service sector that as the other economic sectors has major and determinant role for production and value-added of economy. In today's world the importance of the service sector and related markets is reached so extent that the developed countries have been allocated increasingly volume of business activities to this sector. With regard to the expansion of the service sector in the economy and establish a close relationship between the manufacturing and service sectors the importance of the service sector as a productive sector is more crucial than ever. Given to the variation of different services, the survey and study of the impact of the value added of banking system on value-added of services group is very importance and its study also seem necessary. The aim of this paper was to study the effect of banking services on the value-added of services sector during the period 1338-1392 in Iran. The vector error correction model (VECM) and Eviews software are used to test the hypotheses. The results show significant effect of transportation added value, value-added of personalized services, banks value-added, value-added of real estate and specialized services on the value added of service group in the related period. Also, according to the obtained results, it was clear that the added value of public services and value-added for hotel and restaurants has no significant effect on value-added of services.