Examining the Link Between Access to Financial Resources and Economic Growth in Iran: Hybrid Approach Using Principal Component Analysis and Capiola Models

Document Type : Original Article

Authors

1 economic

2 Economic

Abstract

Access to financial resources, as an important factor in the optimal allocation of financial resources, reducing transaction costs and facilitating access to capital, plays a key role in economic growth. On the other hand, economic growth, by affecting institutional structures and increasing the demand for financial services, can contribute to the further development of the financial sector. Therefore, the aim of this study is to examine the link between access to financial resources and economic growth in Iran during the period 1368-1401 using a hybrid approach and copula models. The findings of the study indicate that financial development in Iran does not have a significant impact on economic growth and financial resources are mainly concentrated in non-productive and brokerage sectors. Also, the growth of broad money without the support of real production has led to increased inflation and reduced the efficiency of financial development. This study emphasizes the need to reform financial policies and allocate resources to productive ources and economic growth in Iran during the period 1368-1401 using a hybrid approach and copula models. The findings of the study indicate that financial development in Iran does not have a significant impact on economic growth and financial resources are mainly concentrated in non-productive and brokerage sectors. Also, the growth of broad money without the support of real production has led to increased inflation and reduced the efficiency of financial development. This study emphasizes the need to reform financial policies and allocate resources to productive ources and economic growth in Iran during the period 1368-1401 using a hybrid approach and copula models. The findings of the study indicate that financial development in Iran does not have a significant impact on economic growth and financial resources are mainly concentrated in non-productive and brokerage sectors. Also, the growth of broad money without the support of real production has led to increased inflation and reduced the efficiency of financial development. This study emphasizes the need to reform financial policies and allocate resources to productive

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History

  • Receive Date: 19 May 2025
  • Revise Date: 02 July 2025
  • Accept Date: 07 July 2025

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