Financial Repression and Economic Growth (Empirical Evidence of Iran's Economy)

The aim of this study is the financial repression in Iran’s economy during the period of 1968-2006. In the first part of the paper, the concept of financial repression, theoretical and empirical literature of financial repression and economic growth have been considered. In the second part of the paper, while financial repression indicators introduced, by using three separate models, the effects of financial repression on Iran’s economy is reviewed. The results of regression models revealed that the financial repression has no significant effects on Iran’s economic growth, but it has negative effects on economic efficiency.