The Rule of Banking System Development in Economic Growth : The Case of Iran

انوشیروان تقی پور

دوره 12، شماره 37 ، بهمن 1387، ، صفحه 21-37

چکیده
  This paper empirically investigates the relationship between banks and economic growth emphasizing the transmission channels from financial development to growth in Iran using time series methodologies, namely Johansen’s co-integration and Granger causality methods in the context of error correction models (ECM). The results show that in our case study banks affect economic growth mainly through the capital accumulation channel. Because of financial backwards and market imperfections, agents face many borrowing constraints, which may hinder their ability to invest at optimal levels.In this ...  بیشتر