Abstract

The purpose of this research is to investigate the effect of IQ on financial development in developing countries. On this basis, countries have been selected based on the average and moderate income levels. In this study, Lynn and Van Hannan studies of 2012 have been used to obtain IQ data for studied countries. As a result, for evaluating financial development, the indicators of private sector credit and bank assets have been used as an average for the period of 2012-2011. This research is descriptive with correlational type; and according to categories based on the purpose, it is considered applied type. A multivariate linear regression model was used to analyze the data and test the hypothesis. The statistical method used for this study is the least squares weighting method; EViews econometric software was also used. The findings suggest that IQs in developing countries have a positive and significant effect on their financial development, so that policymakers and government can gain more knowledge about improving the country's economic and financial development level based on these results; and they can take these results into their economic decisions and, by improving the environmental conditions, provide the potential for growth and prosperity, which, in turn, will increase the IQ of the community. Creating appropriate conditions for the country's elites will keep them in their country to benefit from the existing conditions and keep them from migrating to other countries, which ultimately can lead to the progress of the individual and national levels of society