On the relationship between the size of Government and the Quality of Economic Growth

Subject Areas : Applied Economics

Akbar Komijani ¹ , Kambiz Hozhabr Kiyani ² , Hadi Haghshenase ³

1 - ندارد
2 - ندارد
3 - مسئول مکاتبات

Received: 2015-08-01 Accepted : 2015-08-01 Published : 2014-11-22

Keywords: Government Size, Good governance, Economic growth, ARDL Method,

Abstract :

The goal of this paper is to investigate the role of government in promoting economic growth I Iran. We have used the ratio between government expenditure and gross national product (G/GDP) as a proxy of the size of government. To analyze the relationship, we have used ARDL method, for both short-term and long-term growth for the period of 1368-1391. Our results indicate that the size of government in both situations has positive and significant effect on economic growth of Iran. However, the extent of government influence over the long- term effects is short-lived. JEL Classification:O26 , E58