The Contribution of the Purely Banking System in the Socioeconomic Development

This paper is an econometric study made on a purely Islamic banking system, the case of the republic of Iran, it's for showing the contribution of this system on the socioeconomic development of the country during the years 1995-2015. The independents variables which are going to represent the Iranian banking system are the volume of liquidity, the financial and monetary services of the institutions and the opportunities of the Islamic products, the dependent variable is represented by the indicator of human development (IHD), these variables were collected by the Statistical Center of Iran (SCI). At the methodological level, we are going to use the unit root tests (ADF, PP, KPSS) for the stationarity and Johansen's cointegration test for the long-term relationship between the independents variables and the dependent variable. The results showed that all the variables are stationary in the second difference, so we could do the cointegration test of Johansen and we found that there are four cointegrations relationships. Finally, we concluded that the purely Islamic banking system can contributes in the socioeconomic long-term development.