Quantitative Reassessment of the Financial Development–Growth Nexus: Application of ARDL and VDCM Models (in Persian)

Frozan Mohammadi, Saeed Solaymani and Mohammad Solaymani ()
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Frozan Mohammadi: Iran
Mohammad Solaymani: Iran

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2011, vol. 15, issue 2, 113-139

Abstract: This study is a quantitative reassessment of the effects of financial development on Iran’s economic growth within the period of 1973-2007 using both Autoregressive Distributed Lag (ARDL) and Variance Decomposition (VDCM) approaches. The empirical results reveal that the financial development has a significant and positive impact on shot-run and long-run economic growth. The shot-run and long-run elasticity of the real GDP to financial development are very little, indicating its very low sensitivity to shot-run and long-run changes of financial development though its long-run elasticity is higher than the short-run one.

Keywords: Financial Development; Economic Growth; ARDL; VDCM (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:auv:jipbud:v:15:y:2011:i:2:p:113-139

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