Application of Fuzzy Regression to Study the Effective Factors of Iran's Economic Growth with Emphasis on Foreign Direct Investment and Banking

Increasing economic growth is one of the most important goals of countries. To achieve this goal, it is necessary to know the factors affecting economic growth. The purpose of this study is to use the fuzzy regression model with symmetric and asymmetric coefficients to investigate the factors affecting Iran's economic growth with an emphasis on foreign direct investment and the banking sector in Iran during the period 2016-2016. The results of the fuzzy regression model with symmetric coefficients indicate that the increase in financial development reduces the instability of economic growth due to the bank-oriented nature of the financial sector in Iran's economy. The results of the fuzzy regression model with asymmetric coefficients show that the investigated factors have a constant effect on economic growth. Therefore, before expanding relations with foreign countries, policy makers should improve the necessary infrastructure and develop resources to increase the country's competitiveness and attract possible foreign direct investment spillovers. Considering the importance of the influence of the financial development index on economic growth, it can be said that the expansion of financial systems is a prerequisite for the positive impact of capital inflows on economic growth.