Development of Financial Markets and Energy Demand in Iran (1386-1359)

Financial development is an important factor in economic growth، particularly in developing economies. Financial development can increase the efficiency of the financial system and on the other hand it can affect the energy demand. This paper investigates the relationship between financial development and energy demand in Iran، Using the ARDL and ECM model in 1359 to 1386. The paper seeks to answer the question whether there is a positive statistical relationship between two variables، financial development and energy demand. Finally، the existence of such a relationship was established in a statistical analysis both for short term and long term. Elasticity of the indicators of financial development in the long were obtained greater than 1. This indicates that the index of long term impact of financial development on energy demand is relatively high.