Mahdi Saeidikousha - Ph.D. student of Financial Management, University of Tehran, Faculty of Management, Tehran, Iran
Tahereh Aghayari - Master of Business management(Financial trend) in Islamic Azad University, Ghazvin, Iran
Banafsheh Farhangzadeh - Master of financial management in Tehran University, Tehran, Iran
Arezoo Haghighat - Master of financial management in Isfahan University, Isfahan, Iran

The aim of this paper is to analyze and to test relationship between finance and growth by considering the nonlinear effects of inflation. To test the research hypotheses, we used the information of 30 state of Iran over the period 2007-2013. In these models, the presence or absence of nonlinearity model is tested. Finally we use the Regression estimates . Inference is based on significant level or p-value, thus likely that any value or significance level of the test is less than 0.05 is rejected at the 95 percent confidence level

financing activity, economic growth, inflation