Investigating the factors affecting the development of non-oil industrial sectors (industrial sector) in economy of Iran

This research investigates the trade and financial development of two important factors influencing the industrial growth in Iran based on the human capital model of Lucas's endogenous growth (1988). The autoregression method with The auto-regression method with distributed lags (ARDL) during 1996 to 2019 is the econometric technique examined in this study.technique examined in this study. The average rate of tariffs and exports of non-oil goods as alternative variables of liberalization policies in the long run have significant, negative and positive effect on the value added of the industrial sector, respectively. The liquidity and domestic credit on the private sector as alternative variablesof monetary and financial markets in the long run has a significant positive and negative effect on the value added of the industry, respectively. Significance of ecm (-1) with -0.83 indicates that the long-run model explication principle is correct and all equilibrium relationships explained are from the explanatory variables tovariable dependent.