The nature and role of financial markets in economicdevelopment

We live in a world where improving quality of life and well-being of humans and achieving economic growth and development are among major tasks of countries. Financial deepening or development is one of pre-conditions of countries` economic growth and development. Studies show that countries with less depth in financial sector, financial resources in them will not allocate efficiently among needs or in some situations, theses countries will face with problem of unavailability of appropriate financial instruments in which sufficient resources would not be collected. Today, those Countries can claim that their economy is healthy and safe, which rely on an efficient financial sector. Economic financial sector consists of three parts of money, insurance and capital market. Insurance is separated from capital market and is mentioned separately because of its size and importance; however, it is a part of capital market . It is tried in this report to provide appropriate indicators and comparative comparison of relevant statistics in selected countries with Iran, the situation of financial development in Iran, review and analysis and related methods of that.

Keywords:

capital market , economic growth , finance