Iranian Journal of Economic Research

The Effectiveness of Government Size on Economic Growth in Iran (by Boundaries Testing Approach)

Authors

Behzad Alipour 1
Mehdi Pedram 2
Iman Charghanian 3

1 Master of Economic Sciences and instructor Payam Noor University of Ahvaz

2 Associate.Prof.Alzahra.Iran

3 Master of Economic Sciences Azad University. Iran

Abstract
We analyse short-run and long-run effects of government size on the economic growth of Iran ,using 1353-90 time series .the results of estimation , by using of ARDL  and boundaries testing approach, indicate convergence of the dynamic model to the long-run trend. The error correction model also show that 59 present of departure from the long-run trend will be corrected in every period. The long-run estimation shows a positive relation between oil price, oil revenues and ratio of investment to the real GDP as independent variables and economic growth as dependent variable, and a negative relation between government size and a dummy variable for war and revolution as independent variables and economic growth.
                      

Keywords

Government Size
Economic Growth
Oil price
investment
ARDL

  • Receive Date 18 April 2016
  • First Publish Date 18 April 2016

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