The Effect of Financial Market Development on Economic Growth in Iran: 1966-2007
The aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has be...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2009-09-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Online Access: | https://joer.atu.ac.ir/article_2882_524e2df9d3e73bb79d960bdeff173eec.pdf |
| _version_ | 1797375733399552000 |
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| author | Reza Akbarian Seyyed Mohssen Heydaripour |
| author_facet | Reza Akbarian Seyyed Mohssen Heydaripour |
| author_sort | Reza Akbarian |
| collection | DOAJ |
| description | The aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has been used in two separate econometric models "Auto-Regressive Distributed Lag (ARDL)" in order to investigates the effects of financial market development on the economic growth. In order to explain the private sector behavior, the rate of claims on private sector to domestic credit has been used as an independent variable.
The empirical results in two models suggest that in the short and long run, the financial development has negative effect on economic growth. This result supports the opinion about negative effect of financial development on economic growth in developing countries with a weak control on loans. In both models the influence of openness on economic growth is positive. The results also show the economic adjustment policies had negative effect on economic growth. |
| first_indexed | 2024-03-08T19:28:39Z |
| format | Article |
| id | doaj.art-8e31e2ffdb4c468ca1e7156e7973ea1f |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:28:39Z |
| publishDate | 2009-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-8e31e2ffdb4c468ca1e7156e7973ea1f2023-12-26T07:56:55ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532009-09-0193443632882The Effect of Financial Market Development on Economic Growth in Iran: 1966-2007Reza Akbarian0Seyyed Mohssen Heydaripour1Associate Professor, Economics Department, Shiraz Universityکارشناس ارشد اقتصاد- دانشگاه شیرازThe aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has been used in two separate econometric models "Auto-Regressive Distributed Lag (ARDL)" in order to investigates the effects of financial market development on the economic growth. In order to explain the private sector behavior, the rate of claims on private sector to domestic credit has been used as an independent variable. The empirical results in two models suggest that in the short and long run, the financial development has negative effect on economic growth. This result supports the opinion about negative effect of financial development on economic growth in developing countries with a weak control on loans. In both models the influence of openness on economic growth is positive. The results also show the economic adjustment policies had negative effect on economic growth.https://joer.atu.ac.ir/article_2882_524e2df9d3e73bb79d960bdeff173eec.pdf |
| spellingShingle | Reza Akbarian Seyyed Mohssen Heydaripour The Effect of Financial Market Development on Economic Growth in Iran: 1966-2007 Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| title | The Effect of Financial Market Development on
Economic Growth in Iran: 1966-2007 |
| title_full | The Effect of Financial Market Development on
Economic Growth in Iran: 1966-2007 |
| title_fullStr | The Effect of Financial Market Development on
Economic Growth in Iran: 1966-2007 |
| title_full_unstemmed | The Effect of Financial Market Development on
Economic Growth in Iran: 1966-2007 |
| title_short | The Effect of Financial Market Development on
Economic Growth in Iran: 1966-2007 |
| title_sort | effect of financial market development on economic growth in iran 1966 2007 |
| url | https://joer.atu.ac.ir/article_2882_524e2df9d3e73bb79d960bdeff173eec.pdf |
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