A study on the asymmetric effects of oil and non-oil revenues on the financial development index in Iran

Natural resources, especially crude oil, play a vital role in the economic development and sustainable growth of countries. In general, oil and non-oil resources are considered as major indicators of government revenue for many economies around the world (Basnet and Opadiya, 2015), because economic programs that are compatible with economic policies and oil prices play a central role in They have the formation of a country's internal policy (Lardick and Mignon, 2008). The purpose of this study is to investigate the asymmetric impact of oil and non-oil incomes on financial development in Iran. In this regard, the non-linear autoregression method with distributed breaks (NARDL) has been used for the time period of 1971-2018. The findings indicate that the positive and negative shocks of oil revenues have a positive effect in the long term, and the positive and negative shocks of non-oil revenues have a negative effect on financial development. Based on this, the government can play a more active role in encouraging the expansion of credit for the financial sector, a more efficient intermediary role in mobilizing domestic savings and directing them towards productive investments in various economic sectors.