Author/Authors :
Bakhtiarian Farideh نويسنده 1Department of Economics, Faculty of Accounting & Managment, Science and Research Branch, Qazvin Branch, Islamic Azad University, Qazvin, Iran , Sabetfar Pooya نويسنده Assistant Professor, Department of Economics, Faculty of Accounting & Managment, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Abstract :
Economic growth and increasing people wealth is the ultimate purpose of all economical systems. Therefore; economists are always trying to model and define integral factors influencing economy and present them as political packages. One of the most important factors on growing economy is increasing different markers of financial systems. In this paper we tried to evaluate relation uniformity between developing different markets of financial section and economic growth in the years 1966 to 2014 . Therefore; using major component analysis for each capital and monetary markets, one useful compound index is created in that market and the model is estimated using ordinary least squares. Estimation Findings show that the effect of both capital and monetary markets on economic growth has been positive and money market effect is more important on growth in the long run. Findings show that there is a nonlinear U shape connection between money market growth and actual production growth in economy. In other words; credit extension and money system activity in low developing levels of economy and money system could not help economic growth, while; a positive and nonlinear connection exist between them in higher levels of economy growth and financial development. Findings also show that there is a uniform linear connection of a moderate gradient between capital market growth and economic growth. Expansion and fluidity increase of capital market is a stimulus factor and lead to economy growth in all situations.
