The Nonlinear Relationship between Bank Credits and Agricultural Employment in Mazandaran Province

Mazandaran province is one of the most important agriculturalareas in iran. researches findings show that the role ofbank credits is really important due to the lack of availablefunds in agricultural sector. in this study, the relationshipbetween allocation of agricultural bank credits of iran as professionalbank section and agricultural employment was studiedin the mazandaran province based on a threshold error correctionmodel during 1981-2011. the results show that the impact ofcredits on agricultural employment has been significantlydifferent in upper and lower level of estimated threshold. theestimated threshold is about 44 percent for bank credits. theimpact of bank credits on agricultural employment will be significantlynegative when they exceeds from the thresholdpoint. the results confirm transfer of capital from agricultureto other sections, resulting in a lack of integrated managementfor credit allocation system.