Financial Economics
majid aghaei; Saeed Rasekhi; sara rangber
Abstract
Despite relative development in financial institutions, and the abundance of financial resources (income from oil sales), Iran has still struggled to experience high and sustainable economic growth rates, even facing negative growth rates in recent years. Therefore, investigating the influential factors ...
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Despite relative development in financial institutions, and the abundance of financial resources (income from oil sales), Iran has still struggled to experience high and sustainable economic growth rates, even facing negative growth rates in recent years. Therefore, investigating the influential factors in relationship between financial development and economic growth is crucial. Accordingly, this study examines the role and significance of oil resources (oil course) on the relationship between financial development and economic growth through investment channels using the ARDL bounding test during the period from 1980 to 2020. According to the research findings, financial development has a positive and significant impact on investment during the examined period, while the oil curse weakens this relationship and can indicate the indirect impact of the oil curse on the relationship between financial development and economic growth through investment channels in Iran. The interactive variable of financial development and the oil curse also had a negative and significant impact on investment during the examined period, indicating the financial system's inability to allocate resources effectively toward productive investments. Based on these results, it can be stated that the oil curse has affected the functioning of the financial sector in the Iranian economy and, by making this sector inefficient, has had a negative impact on investment, thus weakening the relationship between economic growth and financial development.
Bakhtiar Javaheri; Khaled Ahmadzadeh; Homeyra Shahveisi
Abstract
The existence of efficient financial institutions, proper allocation of resources and financial development are the prerequisites for achieving desired economic growth and development. Therefore, it is necessary to identify the factors affecting the financial development of countries. This study ...
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The existence of efficient financial institutions, proper allocation of resources and financial development are the prerequisites for achieving desired economic growth and development. Therefore, it is necessary to identify the factors affecting the financial development of countries. This study examines the impact of natural resources and institutional quality on the financial development of developing countries over 2000-2016 using systemic GMM In this study, we used three indexes for financial development: the Financial Development Index (FDI) developed by IMF, the total credit provided by banks to the private sector as a share of GDP, and the Z-score index. The rent of natural resources is measured as a weighted average of income flows from oil, gas and minerals and Good Governance Indicators are used as measures of institutional quality. The results suggest that natural resources rents have a positive and significant effect on credit provided to the private sector and Financial Development Index, but threaten the stability of the banking sector. In addition, Institutional quality indicators also show a positive effect on three indicators of financial development.
Parviz Davoudi; Hassan Sabzi Khoshnami
Abstract
Income inequality has received much attention from economists and policymakers as one of the components of economic development. On the other hand, the difference between developed and developing economies can be checked in the efficiency of their financial systems. This study investigates the ...
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Income inequality has received much attention from economists and policymakers as one of the components of economic development. On the other hand, the difference between developed and developing economies can be checked in the efficiency of their financial systems. This study investigates the effect of financial development on income inequality in Iran using the threshold regression method during 2020-1967. The results show that the effect of financial development of the banking sector and the stock market on income inequality has a threshold limit. in model one, the financial development of the banking sector before and after the threshold has a significant and negative effect on inequality. In model two, stock market financial development has significant and negative effect on income inequality before the threshold but not significant effect after the threshold. However, there is insufficient evidence to support the effect of financial development on income inequality in the form of Greenwood and Jovanovic's inverse U hypothesis.
Yousof Eisazadeh Roshan; Majid Aghaiee; Sammaneh Ghasemi
Abstract
The main objective of this study is to investigate the effect of ICT improvement on the effect of financial intermediaries on economic growth in Iran's provinces. For this purpose, according to the classification of the Information Technology Organization, the provinces are divided into two groups of ...
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The main objective of this study is to investigate the effect of ICT improvement on the effect of financial intermediaries on economic growth in Iran's provinces. For this purpose, according to the classification of the Information Technology Organization, the provinces are divided into two groups of provinces with the development of information and communication technology Higher and lower than average. Then, gather information and data required during two five-year periods 2006-2010, 2011-2015 and in the context of dynamic panel models using estimators GMM , the role of ICT in the effectiveness of financial intermediaries on economic growth in the two groups Provinces were tested and checked. The results of this study indicate that, first; the effect of financial intermediaries on the growth in both periods and in both groups of provinces is negative. Secondly: the level of ICT development reduces the negative effect of financial intermediaries on economic growth. Also, according to the results, the impact of the inflation rate and government size on economic growth in both groups of provinces was negative.
Farzaneh Ahmadian Yazdi; Mohammad Ali Aboutorabi
Abstract
Financial development is a key determinant of economic growth and development. This is more important in the case of resource-rich developing countries; because if they achieve high level of financial development, they will get benefit from resources in order to access sustainable growth and development. ...
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Financial development is a key determinant of economic growth and development. This is more important in the case of resource-rich developing countries; because if they achieve high level of financial development, they will get benefit from resources in order to access sustainable growth and development. With regard to importance of this issue, the impact of financial development on conversion of natural resource rents into foreign capital in Iran has been studied during 1970-2014. The results of our ARDL model show that natural resources have positive effect on foreign capital in both short-run and long-run. Also, the results of rolling ARDL regression in the case of multi-dimension financial development index indicate that financial development has failed to materialize its potential effect to improve the impact of natural resources on foreign capital accumulation in both short-run and long-run. The outcome of regression based on single-dimension financial development indices suggests that some of these indices have been able to increase the positive effect of natural resources on foreign capital accumulation. However, there are no observable beneficial effects in the long-run. It seems that the lack of attention to financial development channels such as foreign financial liberalization, as well as financial repression during a long period of time, has been the main cause of this phenomenon in Iran.
tayebe chaman; parisa mohajeri; Ali Arabmazar Yazdi
Abstract
The purpose of this paper is to identify factors affecting tax evasion with emphasis on financial development. For this purpose, we estimate an ARDL model for the period 1978 to 2014. Our results show that, at first, there is a long-run relationship between tax evasion and explanatory variables (financial ...
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The purpose of this paper is to identify factors affecting tax evasion with emphasis on financial development. For this purpose, we estimate an ARDL model for the period 1978 to 2014. Our results show that, at first, there is a long-run relationship between tax evasion and explanatory variables (financial development, literacy rate, government size and industry value added (%GDP). Secondly, financial development has a significant negative effect (in short-run and long-run) on tax evasion. In other words, higher financial development leads to lower tax evasion. This finding is consistent with the theoretical expectation. Thirdly, literacy rate, government size and industry value added (%GDP) have a significant negative effect on tax evasion. That means tax evasion is decreases by increasing each of them. Also, the variables of GDP per capita and tax complexity did not have a significant effect on tax evasion.
javad taherpoor; teymor mohammadi; reza fardi
Abstract
In Economic literature, different dimensions of financial development have been scrutinized. In this regard, what is important about bank-based financial systems is the distribution of loans and credits among different economic sectors. Actually, in non-competitive markets characterized by imperfect ...
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In Economic literature, different dimensions of financial development have been scrutinized. In this regard, what is important about bank-based financial systems is the distribution of loans and credits among different economic sectors. Actually, in non-competitive markets characterized by imperfect and incomplete information, any sort of distribution of credits and loans which is based on profit maximization for banks will not necessarily result in maximizing the collective interests of a country and it can even have adverse effects for the whole society. With regard to the issue described, this paper aims to study the role of distribution of credits and loans among different sectors on economic growth in Iran. To achieve this goal, we have used and analyzed time series data for the period 1984 to 2015 using Autoregressive Distributed Lag Model (ARDL). The findings of this paper show that the logarithmic coefficient of financial growth index (calculated as the ratio of total outstanding credits to GDP) is positive and significant in both short-term and long-term periods. This means that financial development plays a positive role in economic growth. On the other hand, the estimated coefficient for the ratio of loans allocated to production sectors to loans allocated to non-production sectors is also positive and significant in both short-term and long-term periods. This suggests that loans allocated to production sectors have a positive effect on economic growth. In fact, one can assert that although an increase in bank loans and credits (actually, the ratio of total outstanding loans and credits to GDP) has a positive effect on economic growth, the more these loans and credits are inclined towards production, the more the magnitude of economic growth being stimulated.
Somayeh Shokravi; Mohsen Khezri
Abstract
In this study, to determine the exact effect of financial development on economic growth, we use quarterly data for 1988 to 2013 and apply factor-augmented vector autoregressive (FAVAR) model in combination with time-varying parameters model (TVP) for the case of Iranian economy. Variables used ...
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In this study, to determine the exact effect of financial development on economic growth, we use quarterly data for 1988 to 2013 and apply factor-augmented vector autoregressive (FAVAR) model in combination with time-varying parameters model (TVP) for the case of Iranian economy. Variables used in this study include economic growth, ratio of government spending to GDP (as an index of government size), economic openness index (the ratio of exports and imports to GDP), inflation and financial development index (as an unobservable variable). Based on our results, the effect of financial development index on economic growth in the period under consideration is positive, an increase in government size leads to lower economic growth, in a way that the government size effect is more intense at times that oil revenues increase. In addition, the effect of inflation on economic growth is positive. Finally, the degree of trade openness on economic growth has a positive effect.
Mohamad Javad Mohaghegh Nia; Ali Akbari Bavafa Gelyan
Abstract
Microfinance programs emerged in mid 1980s. So, microfinance can be labeled as a new phenomenon. The reason for emergence and rapid development of microfinance programs can be weakness of former development strategies, especially those of financial development. In this research by using a three-dimension ...
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Microfinance programs emerged in mid 1980s. So, microfinance can be labeled as a new phenomenon. The reason for emergence and rapid development of microfinance programs can be weakness of former development strategies, especially those of financial development. In this research by using a three-dimension Delphi query, the important factors affecting microfinance at Iran have been explored. In the resources side, deposits are composed of Qard al-Hasan, donation, subrogation and saving. In the uses side, the loans are divided into consumption (general consumptions and emergencies) and investing purposes. The institutions active in microfinance are divided into two groups of banks (commercial banks and financial holdings) and financial institutions (for profit and non-profit). The group lending and solidarity responsibility were underlined at legal-jurisprudence. At the application aspects, emphasis on usage of electronic systems and separate report of loans by their types and contracts is noticeable.
Mohammad Rasti; Javad Rezaei
Volume 13, Issue 51 , January 2014, , Pages 151-161
Abstract
Based on the literature on the relationship between financial development and trade, this paper examines the effect of financial development on both trade and trade in services in acceded countries to the WTO. By using a panel data method for the period of 1985 to 2006, the results indicate that financial ...
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Based on the literature on the relationship between financial development and trade, this paper examines the effect of financial development on both trade and trade in services in acceded countries to the WTO. By using a panel data method for the period of 1985 to 2006, the results indicate that financial development has a positive effect on total trade in acceded countries; therefore, it shows that financial development is a determinant factor of trade development and policy in these countries. On the other hand, financial development has a negative effect on trade in services.
Ali Ghanbari; Majid Aghaei; Mahdieh Rezagholizadeh
Volume 11, Issue 40 , April 2011, , Pages 1-29
Abstract
Abstract Since the financial development can exert a significant effect on the distribution of income; in this paper we would investigate the relationship between the financial development and inequality in Iran. So, we estimate this relationship ...
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Abstract Since the financial development can exert a significant effect on the distribution of income; in this paper we would investigate the relationship between the financial development and inequality in Iran. So, we estimate this relationship by applying the Generalized Method of Moment (GMM) Techniques and testing the alternative existing theories in the period of 1350 - 1385. Based on our results in this essay a negative and linear relationship between financial development and inequality is approved in Iran. However, empirical results show that there is little evidence supporting the non-linear inverted U-shaped hypothesis in Iran.
