M.A. Thesis:

Remmittance,banks and stockmarkets : panel evidence from deloping and developed countries

Remittence and financial development can be closely interlinked. Hence, the severity of the relationship between Remittence and the development of the banking sector and the development of the stock market can be considered as a question that plays a significant role in financial planning We analyzed the causal relationship to answer the question between stock market development, the development of the banking sector and transfers with the developing and developed countries panel using the simultaneous equation method in 20002015 which the depth component was used as an indicator for assessing the capital market development and the banking sector development and the variables were considered as control in order to objectify of the results and the results of the research indicated that, following the theory test, there was a significant bilateral relationship between currency remittance and the development of the banking sector that is directly in the developing countries and revered in developed countries which can be due to the factors such as bank interest and facilities, also there is direct interconnected relationship between currency remittance and capital market development between developed and developing countries. Increasing in currency remittance can increase the capital market development in both developed and developing countries. In fact, achieving sustainable and long-term economic development requires to equip and allocate the optimal financial resources in the capital market at the national economic level, and this is not possible easily without other financial markets' assist. Also, since the capital market has the ability to invest and its transfer, therefore ease of currency remittance will result in increased use and consequently increase in remittances, on the other hand, in the study of relationship between development of the banking sector and the capital market development, this relationship has been direct and bilateral which developed countries are according to developing countries, with the difference due to the stability and transparency in the two parts of the financial system in developed countries. These coefficients have higher weight and more influence, however considering to the same result in the mentioned hypothesis test between developing and developed countries, can comprehend this assumption and consider globally expand for it and as a result, capital market development will accelerate the cash flow of the economy, it will be effective in developing of the banking sector.

Keywords: Remittance, Banking sector development, Stock market development.