Islamic Banking Contracts and Human Development Index in Iran

Achieving economic growth and development is one of the most important goals of human societies. In the meantime, the role of human development is very important and human being both as a goal and a development tool has a special place in designing and implementation of development policies. This importance has made the world and international organizations pay special attention to human development and identify the factors that affect it. Islamic banking contracts are among the factors that are of great importance in the Issues related to development in Islamic economics and can have significant effects on the components of economic and social development in Islamic countries. In this study, the effect of Islamic banking contracts in terms of Musharekat, exchange contracts and Qard-ul-hasanah contracts on the human development index has been investigated in Iran during the years 2000 to 2016 (based on seasonal data). In order to estimate the effects of variables, the bounds testing and autoregressive distributed lag modeling (ARDL) approaches have been used. Regression results show that Islamic banking contracts in the short and long term have led to improvements in the human development index in Iran