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The development in financial and banking sectors is an integral part of economic growth and development. The experiences of many developing countries show that reform driven policy in finance and banking system enhances economic prosperity and removes the macro investment impediment. This Paper evaluates the impact of Linearization policies (or financial restriction) and also changes in real interest rate on deposit and credit of financial sector development in Iran, over the period 1969-2003. The results show that there is a significant and negative relationship between restriction (and reserves control) and financial development. Also, there is significant relationship between changes in banking real interest rate (credit and deposit) and financial development. While the increase in real interest rate on informal markets leads to demand transfer from informal market to formal market and consequently towards the expansion of financial market in Iran. Therefore, low real interest rate, with regard to other policy considerations, would cause increase in potential investment and will improve the proper use of resources in the economy.

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Regarding importance of studies on different dimensions of total fertility rate (TFR), this study investigates the socioeconomic determinants of TFR at an aggregate level and identifies their impacts on TFR variations in Iran. By introducing four economic, social, cultural and health components, this paper tests the effects on dependent variable (TFR) using an auto-regressive distributed lags (ARDL) model and error correction mechanism (ECM). Results show that female life expectancy index not only had positive and significant relationship with TFR in several specifications, but also its coefficient was higher than the other coefficients. In addition, the relationships between TFR and other variables, except for GDP per capita, were expectedly significant in dynamic models. The speed of adjustment was very slow, and short-run fluctuations approached long-run equilibrium gradually with long lags. Regarding the effectiveness of different components, it can be said that health component is prior to cultural and social factors, and the economic dimension gets the final rank. Thus, an emphasis on fertility health, especially encourage to marry in marriage ages through social protection schemes could help population dynamism and to enhance the TFR more than substitution rate.