چکیده:
Achieving economic growth، as one of the essential purposes in each country، needs appropriate tracing of government as one of the important and effective sections in that economy. Nowadays، unlike the 80s، economists concentrate on objectives such as explanation of the relationship between size of the government and economic growth and delineation of optimum size of the government which causes maximum level of economic growth. But، notwithstanding widespread studies had not caught the unique result about of this theme. This paper is conducted with the purpose of examining the impact of size of the government on economic growth in selected OECD-NEA countries over the period of 1990-2011 and uses the Panel Smooth Transition Regression (PSTR) model in the form of Cobb– Douglas equation function as it is applied in Dar and Amir Khalkhali (2002) to remove the existent problems in previous studies and offering reliable results in frame of comprehensive and integral model. The results of the study strongly reject the linearity hypothesis and estimate two regimes that give a threshold in size of the government of 28.27 percent to gross domestic production (GDP) for selected countries. Moreover، the impact of size of the government on economic growth is positive for both regimes. But، the intensity of it is low in high levels of size of the government. So، the results of this study express that the big govenment size is as a brake for high levels of economic growth in selected countries under investigation. Also، the impacts of investment، labor force، and export on economic growth have been evaluated as positive in two regimes of the non-linear model.
خلاصه ماشینی:
This paper is conducted with the purpose of examining the impact of size of the government oneconomic growth in selected OECD-NEA countries over the period of1990-2011 and uses the Panel Smooth Transition Regression (PSTR)model in the form of Cobb– Douglas equation function as it is applied inDar and Amir Khalkhali (2002) to remove the existent problems inprevious studies and offering reliable results in frame of comprehensive and integral model.
Folster & Henrekson’s (2001) study of 23 countries from OECD members applying growth rates of GDP and labor force, investment to GDP, government taxation revenues to GDP, total government spending to GDP, and rate of human capital growth variables in panel data framework with fixed effects, has concluded the positive relationship between variables and economic growth except government taxation revenues to GDP and size of the government variables.
However, Heitger (2001), by extending the neoclassical model and using panel data approach with random effects, has concluded the negative impact of government spending and rate of labor force growth on economic growth and negative relationship between private investment and size of the government in the same year for 21 countries from OECD members over the 1960-2000 period.
So, this paper provides new evidence about the impacts and consequences of size of the government on economic growth, applying production function developed by Dar & Amir Khalkhali (2002) and non-linear testing for the relationship of variables under investigation.