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Trade liberalization, financial development and economic growth in the long term: The case of Iran

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Shahiki Tash M. N., Sheidaei Z.
Business and Economic Horizons
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2012
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vol. 8
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issue 2
33-45
EN
This study seeks to empirically examine the joint impact of trade liberalization and financial development on economic growth in Iran, using endogenous growth theory during the period 1966-2010. In this article principal component analysis is applied to make better indexes for trade liberalization, financial development and the joint effects of both. The empirical findings obtained from Johansen co-integration procedure signify a positive relationship between trade liberalization, financial development and the joint impact on economic growth in Iran.
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