The Impact of Islamic Banking on Important Subsectors of Iran's Economy

Given the importance of Islamic banking, the main purpose of this study is to investigate the impact of economic growth and investment in the country on the development of Islamic banking. This research is descriptive in nature and applied in purpose. Relationships between variables were investigated using the method of simultaneous equations based on statistical data from 1371-1376. Data from the Central Bank of Iran and the World Bank have been used to collect information to test the hypotheses. The hypotheses were analyzed using the 2SLS method and considering the variance heterogeneity and fixing it using generalized least squares (GLS) using Eviews software. In the present study, the root mean square error is used to express the explanatory power of the model, which has an acceptable value of 0.085, and the research model has a suitable explanatory. Findings show that with the increase and development of Islamic banking and its proper implementation, the economic growth index has improved. Also, the improvement and development of Islamic banking will increase investment in the country. There is also a positive and significant relationship between human capital and economic growth. Capital productivity and savings indices have a positive and significant relationship with economic growth and GDP has a positive and significant relationship with increasing investment in the country. Finally, with the increase of coins, the amount of investment in the country will decrease.