Impact of Financial Development on Economic Growth in Iran

اقتصاد پولی مالی

Article 3, Volume 18, Issue 2, January 2012   

Document Type: پژوهشی

DOI: 10.22067/pm.v18i2.27610

Authors

Mahmood Hoshmand^* ; Mohammad Danesh nia

Abstract

Always, financial sector has a central role in development and economic growth. Hence the relationship between financial development and economic growth appears to be essential. This article examines the impact of financial development on economic growth, with consider other variables affecting the economic growth, such as ratio of commercial, domestic investment and interest rate.
This study estimates a relationship between variables within a Auto regressive Distributed Lag framework over the periods .
The results of this study represents a significant and positive impact of financial development on economic growth. Also domestic investment has a positive and significant impact on economic growth, and Interest rate has a significant negative impact on economic growth.

Keywords

Financial development; Economic Growth; Autoregressive Distributed Lag Model; Economy of Iran