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Abstract
Mazandaran province is one of the most important agricultural
areas in Iran. Researches findings show that the role of
bank credits is really important due to the lack of available
funds in agricultural sector. In this study, the relationship
between allocation of Agricultural Bank credits of Iran as professional
bank section and agricultural employment was studied
in the Mazandaran province based on a threshold error correction
model during 1981-2011. The results show that the impact of
credits on agricultural employment has been significantly
different in upper and lower level of estimated threshold. The
estimated threshold is about 44 percent for bank credits. The
impact of bank credits on agricultural employment will be significantly
negative when they exceeds from the threshold
point. The results confirm transfer of capital from agriculture
to other sections, resulting in a lack of integrated management
for credit allocation system.