چکیده:
We apply the two-sector production function developed by Ram (1986) to estimate the threshold regression model for Iran, concerning the effect of government size on economic growth. Three government size indicators are used to find out the different threshold points. The results show a non-linear relationship of the Armey curve in Iran, in which the threshold effects corresponding to total government expenditure share in GDP, government consumption expenditure share in GDP, and government investment expenditure share in GDP of about 34.7%, 23.6% and8%, respectively.
خلاصه ماشینی:
"Literature Review of the relationship between government size and economic growth Authors Relationship of government size and economic growth Government size variable Empirical method Subject Explanation Hsieh and Lai (1994) Uncertain Total government expenditure VAR G-7 The relationship will change with time and they did not find the optimum government size Lin (1994) Uncertain (government consumption expenditure/GDP) and (government non-production expenditure/GDP) OLS 2SLS 3SLS 20 developed countries and 42 developing countries The government size has a positive impact to economic growth in the short run, but has no impact in the long run Vedder and Gallaway (1998) Uncertain Classify government size into five classification(note 1) Multi-regression U.
Economic Growth and Share of Government Investment (SGI) Variables Linear Model Government size (SGI) به تصویر صفحه مراجعه شود)) As table 5 shows, while "total government expenditure divided by GDP" is the threshold variable, total government expenditure has a significantly positive relationship with economic growth in the linear model.
347) in two-regime model, total government expenditure and economic growth have a significantly positive relationship, but when the government size is large (the threshold value is larger than 0.
Thus, we can make sure that the non-linear situation of the Armey curve exists in Iran when "total government expenditure divided by GDP" is the threshold variable.
Economic Growth and Share of Government Consumption (SGC) به تصویر صفحه مراجعه شود)) As table 7 indicates, when "government consumption expenditure divided by GDP" is the threshold variable, and government size is small (threshold value is less than 0.
The empirical results indicate that threshold effect exist between government size and economic growth in Iran: First of all, concerning the "total government expenditure share in GDP" as the threshold variable, the threshold regime is 34."