Impact of Financial Repression on Investment in Iran's Economic Sections (Services, Industry and Agricultural Section) by Using the Panel Data Approach

Mahdi Arab, Ebrahim Negahdari

Abstract


Achieving a desirable economic growth and development is not possible without efficient financial institutions and proper equipment of financial resources. In this respect, efficient financial systems can cause a better allocation of resources and ultimately increase economical growth through getting information about investing opportunities, collecting and equipping savings, monitoring the investments and applying corporate governance, facilitating exchange of goods and services and managing risks by reducing the expenses of trading and getting and analyzing information. In this study, the impacts of financial repression on investment in Iran's economical sections have been reviewed during a period from1976 to 2013. In order to meet the purposes of the study, a combined data model has been used and the results of the model showed that the impact of the indexes of financial repression on investment in economical sections is negative. Therefore, programs of the policy makers in this regard can be especially significant. Also, given the constraints of Iran's economical sections, it is necessary for the injection of investment to be done in such a way that it would be absorbed completely.


Keywords


Investment, Financial Repression, Combined Data Method.

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