On the rollercoaster of development: banking and economic growth in Iran under the Pahlavis and the Islamic Republic (Ph.D. Thesis)

There is debate over the extent to which a banking system can stimulate growth in developing economies. This thesis argues that various macro- and micro-level factors both create and inhibit financial deepening. The state, sources of capital, international financial institutions, and politics directly influence the structure and ability of banks to help promote growth. Iran is chosen as a case study due to its transformation from a traditional finance system and an entirely Islamic banking system. This thesis utilizes a historically based comparative analysis of Iran's banking system before and after Islamization to trace the factors which motivated and impeded the development of the sector under the Pahlavi Monarchy and the Islamic Republic.