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Investigation of the Effect of Financial Markets Development on Iran’s Economic Growth during the Period between 1994 and 2004
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| Ali Akbar Arabmazar *, Zeynab Ahangar |
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Abstract: (24311 Views) |
| The role of financial markets in macroeconomic parameters such as investment, production, private sector consumption, export, import and prices, has attracted special attention as a means of providing a suitable background and increasing the level of production. The effect of financial markets development on the economic growth and other macroeconomic variables has been investigated in this paper. In the form of macroeconomic model by applying system simulation methods and the degree of effectiveness on the GNP through the development of financial markets has been specified using the model theory. Through simulation application of 10% development to the money market and the capital market for a period of five years (1997-2002) indicates that after the third year, financial markets development influences first the production level via increasing investments, and later the other model variables, as a result of the increase in production level and income. |
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| Keywords: Endogenous Growth Models, Financial Markets, Money Market, Capital Market |
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Type of Study: Research |
Subject:
General
Received: 2012/09/5 | Published: 2009/04/15
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