THE INFLUENCE OF PRODUCTIVITY GROWTH ON LIQUIDITY CHANGES IN THE BRANCHES OF TEJARAT BANK, KURDISTAN PROVINCE

Abstract

The aim of this research is to investigate the growth of productivity on liquidity changes in Tejarat Bank, Kurdistan province, within 2010-2014 in which 34 branches were accounted into consideration. This research is practical in terms of goal and is a descriptive-correlational research in terms of methodology. In this research, the criteria of productivity growth which include the services resulted from physical capital, the services from technology capital and the services from workforce personnel are tested as independent variable and liquidity changes are tested as dependent variable. After estimation tests, equations ARDL, OLS and Benerjee test are used for testing the assumptions of research. The findings of research represent that there is a meaningful relation between the growth of productivity, services from physical capital (number of branches) and services from workforce personnel and liquidity changes; but no meaningful relation was observed between the services from technology capital (information) and liquidity changes. The findings show that there is a meaningful relationship between productivity growth i.e. services from physical capital (number of branches) and services from workforce personnel and the changes of liquidity, and no meaningful relation exists between the services from technology capital (information) and liquidity changes. So, it can be concluded that the existence of branches and proper services of workforce personnel cause general welfare and customer attraction, and it results in positive meaningful cash flow and this issue per se causes more benefit and increase of liquidity in the branches of Tejarat bank, Kurdistan province.