This study has done to evaluating the relationship between financial development and economic growth in Iran. The Long-term relationship was our goal. The population of this study is Islamic republic of Iran economic information during 1981- 2011. The ARDL and bounds testing approach to integration was adopted to estimate the long run relationship and long run dynamic parameters of the model. The test suggests that there exists an integrating relationship variables. Findings show that, financial sector should initiate new policy to boost the process of capitalization to raise economic growth by distributing financial resources to competent and profit oriented projects.

This study has done to evaluating the relationship between financial development and economic growth in Iran. The Long-term relationship was our goal. The population of this study is Islamic republic of Iran economic information during 1981- 2011. The ARDL and bounds testing approach to integrati...