TY - JOUR T1 - The Study of the Role of the Financial Development in the Relationship Between Exchange Rate And Productivity Growth: (Stock Market Development) TT - بررسی نقش توسعه مالی در رابطه بین نرخ ارز و رشد بهره‌وری (با تأکید بر توسعه بازار سرمایه) JF - qjfep JO - qjfep VL - 4 IS - 15 UR - http://qjfep.ir/article-1-490-en.html Y1 - 2017 SP - 7 EP - 22 KW - Exchange rate KW - financial development KW - productivity KW - GMM method N2 - Today, most economies seek to achieve increasing productivity growth. Hence, identifying the factors which can affect the productivity growth, other than what most traditional theories say, is essential. This study examines the role of financial development levels in relationship between exchange rate volatility and productivity growth for 34 countries, including Iran in 1994-2014 period. In this study, the ratio of the value of the stock exchange to GDP has been introduced as a criterion of development of the financial sector. The estimation results from GMM method show that exchange rate volatility has a negative effect on productivity growth in low financial development and positive effect in higher financial development level. Therefore, due to unfavorable exchange rate volatility effects in countries with low financial development, a movement towards a more flexible exchange rate regime requires further financial market development. M3 ER -