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Showing 3 results for Economic Growth.
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Volume 3, Issue 7 (9-2014)
Abstract
Abstract
Currently, Islamic banking should be considered as a potentially progressive monetary structure. In a variety of Islamic and non-islamic countries around the world, Islamic banking has been adopted alongside conventional systems of banking and in some cases it has been well developed. We would introduce the theoretical foundations of Islamic banking and investigate its potential impacts on economic growth and development. The principles of Islamic banking would be established and based on these principles we would discuss the possible tools and outcomes of such a method of financing. We have compared Islamic banks and conventional banks in four different categories: efficiency, stability, moral hazard, and poverty reduction. It is found out that previous studies support the hypothesis that Islamic banking is a necessary tool of economic growth. First of all this economic growth seems to be higher than the economic growth achieved through conventional financial institutions. Secondly, an Islamic financing which instead of utilizing interest rates, takes advantage of a good amount of participatory contracts and exchange could lead to a much more stable economic development specially because it might encounter lesser and low life-time economic crises. However, one should not assume that Islamic banking would always be a wise choice for economic development. In the paper we have mentioned some situations in which sticking with Islamic banking in an inflexible manner could be a serious obstacle for development. One of the results of this study for policy makers could be the guideline that using Islamic banking as the proxy of financing could help to stabilize the macroeconomy in developing and developed countries.
Arsham Hodaei, Mohammad Reza Farzin, Karim , Farhad Ghaffari,
Volume 12, Issue 43 (7-2023)
Abstract
An efficient financial market in the economy can cause economic growth by ensuring the optimal allocation of financial resources, efficient allocation of economic resources, and reducing the cost of capital by accelerating capital accumulation processes in the financial system. The relationship between financial innovation and economic growth has been one of the topics of concern for economists for the past few decades, and different views and opinions have been raised in this regard. In this article, three indicators of financial innovation, i.e. the ratio of liquidity volume to the volume of money in circulation, the ratio of bank credits to the private sector, and the penetration rate of the Internet on the economic growth of Iran during the years 1375-1399, using the auto-distributional regression model with a break (ARDL) in Short term and long term has been paid.
The results show that the short-run credit ratio and the
long-run ratio have a significant positive effect on Iran's economic growth. Also, trade liberalization has a positive effect on economic growth in the long-run. It is suggested that financial innovation expands financial activities in the economy with the emergence of new forms and structures of financial institutions, better financial services through technological advancement, improvement of financial products and capital accumulation by encouraging savings in society, which in turn leads to economic growth. In addition, an efficient financial sector requires financial innovation that allows efficient allocation of economic resources to productive methods.
Masoud Emamei, Roya Aleeomran, Sima Eskandari Sabzi,
Volume 13, Issue 48 (8-2024)
Abstract
This research aims to investigate the long-term impact of Brainard's uncertainty and banking stability on Iran's economic growth; Therefore, it is practical in terms of purpose and analytical in terms of causal type. The statistical population is all the banks admitted to the Tehran Stock Exchange. The model presented in this research includes four sectors: households, companies, banks and the government. Thus, the stochastic dynamic general equilibrium model was designed according to the long-term conditions of Brainard's uncertainty, monetary policy and research objective. For this purpose, first the utility function of the household was explained and then the optimal equations of the household sector were extracted from the utility maximization process according to the budget constraints. After that, the production function was explained in terms of the assumption of price and wage inflexibility competition, and optimal equations were obtained from the company's profit maximization process. Also, the banking sector was added to the model, which is one of the initiatives and innovations of the present research. The banking sector, like a producer, seeks maximum profit, and through this, the optimal equations of this sector were also obtained. Finally, the government and central bank were also added to the model according to the conditions of Iran's economy. To solve the model, first all the equations must be linearized, so in the next step, the linearization process was done in different ways. The next step is to determine the parameters of the model, which was obtained from the combination of calibration and estimation methods, and the model was solved using the random dynamic general equilibrium model solution methods
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