BANK SYSTEM EFFICIENCY AND CONVERGENCE IN THE IRAN PROVINCES

According previews researches Bank system efficiency in every country, is a fundamental step toward economic growth. The most important topics in the of growth, is convergence. This paper examines the Impact of bank efficiency on the convergence process across in the range of 30 provinces for the period 2001-2015, giving special attention to the role of bank performance as a conditioning factor, using panel data. First, the Bank system efficiency calculated with SFA method and after, the Impact of bank efficiency in the convergence process estimated. As a result of the convergence of a function a of factors such as the accumulation of physical capital accumulation and bank efficiency. Then Bank system efficiency in every country, is a fundamental step toward economic growth and convergence.