Financial Repression and Economic Growth(Case of L.R Oflran)

In this paper our aim is to find a relationship between someindices of financial repression and investment in iran. according tosolow growth theory, stock of capital is an important factor ingrowth gpd. so if there is financial repression in a country stockof capital can not graw and and thus growth rate remain low, andcountry remain poor and underdeveloped. we start the paper bywhat we mean by financial repression.when government sets a ceiling for rate of interest below theequilibrium rate. and directs banking sector funds to some specifiedactivities or when financial institution are owned and controlled bygovernment, or offer subsidize loans to some of the borrowers inperiods of high inflation rates, we have financial repression (t.killick, 1993)