Economic theories maintain that saving is a significant financial resource for financial investment and economic growth; however, its structure has received little scholarly attention. If the structure of saving contributes into economic sterilization, it may result in undesirable consequences. This study investigates the relationship between saving structure, speculation housing and economic growth in Iranian economy, experiencing a high level of saving in the period 1970-2016. The results indicate that saving did not contributed into economic growth in Iranian economy; instead, a large proportion of saving was directed into speculation activities accumulating in the form of land and housing sector. During the time, this action increased the housing and land price index, much more than the total price index in Iranian economy. Therefore, it would be considerably difficult to start a business since the land is expensive; moreover, Iranian households assign a considerable amount of their money to housing and land section casing economic stagnation in other economic sections. Hence, despite the fact that Iran enjoys a high level of saving, it constantly suffers from enough budget resources for financial investment.
JEL: D14. D84. O16. O47