• Title of article

    Investigating the Asymmetric Effects of Banking Sector Development and Stock Market Development on Economic Growth in Iran Using Smooth Transition Regression (STR) Model

  • Author/Authors

    rostami, nasrin Department of Management and Economic - Islamic Azad University, Arak Branch , najafizadeh, abbas Department of Management and Economic - Islamic Azad University, Arak Branch , sarlak, ahmad Department of Management and Economic - Islamic Azad University, Arak Branch

  • Pages
    20
  • From page
    131
  • To page
    150
  • Abstract
    The purpose of this paper is to examine the asymmetric effects of banking sector and stock market development on economic growth in Iran. For this purpose, Smooth Transition Regression (STR) model used based on seasonal time series data during 1989-2017. The results indicate that the impact of financial and banking development indices on economic growth is different for economic growth rates above and below 6%. Therefore, if the economic growth rate is higher than 6%, then we have a regression and when economic growth is lower than 6% will have another regression in order to effect of financial development of economic growth. In addition, results show that that the relationship between private sector credit and economic growth is much stronger than the relationship between stock market and economic growth.
  • Keywords
    Financial development , Stock market , Banking sector , Economic growth , Smooth Transition Regression (STR)
  • Journal title
    Astroparticle Physics
  • Serial Year
    2018
  • Record number

    2473420