The effect of some components of government expenditure on the economic growth Iran

Document Type : Original Article

Authors

1 Ph.D. Student in Economics, Department of Economics, Faculty of Humanities, Islamic Azad University of Firoozkooh, Iran

2 Associate Professor, Department of Economics, Faculty of Humanities, Islamic Azad University of Firoozkooh, Iran

Abstract

Identifying the type of relationship between the level of government intervention in the economy and economic growth has always been one of the issues discussed in the field of public sector economics. The most important instrument of the government's intervention in the economy is the expenditure it spends, so that the amount of government expenditures and how it is allocated to different sectors often affects economic variables. In this research, the impact of government expenditure components, which include education, health and military expenditure, along with investment variables and employment rate, on Iran's economic growth during the period of 1350 to 1398 has been investigated. Based on the results of the smooth nonlinear transfer regression model, the nonlinear and threshold relationship in the model was confirmed and the results showed that in the first regime, the effect of health expenditure growth on economic growth was positive and the effect of military and educational expenditure growth was negative. In the second regime, the impact of the growth of health expenditures was negative and the impact of the growth of education and investment expenditures was also positive.

Keywords

Files

Share

How to cite

Statistics