Survey of Effects of Financial Development and Quality of Institutions on Iran's Economic Growth by ARDL Model
Journal Title: Journal of Empirical Economics - Year 2015, Vol 4, Issue 6
Abstract
This study examined the quality of institutions and financial development, and the interaction of financial development and institutions on economic growth in the short run and long run by using of Auto Regressive Distributed Lag (ARDL) model during the period of 1981-2013. Thus, this study adopts the framework introduced by Mankiw, Romer and Weil (1992) that expanded with the addition of institution variables. The results of estimation equations shows that financial development in the long run has meaningfully positive effect on real GDP per capita. But when combined with the quality of the institution will be a negative influence. This means that when the financial development causes to economic growth which the context of appropriate institutional quality is formed.
Authors and Affiliations
Alireza Erfani, Hedayat Mehralitabar, Smaeil Shamsiyan
Keywords
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