چکیده:
The impact of government size on economic performance has long been a focus of economists. Some theories emphasize serious non-intervention by the government in economic activities, while others introduce the government as a factor for growth and development. In this regard, 'Barro' believes that when government expenditure is aimed at correcting externalities, monopolies, and issues related to public goods, it can lead to strengthening economic growth. Additionally, the government can use its expenditures to define laws for protecting property rights and establishing security, thereby bringing about higher public participation and growth. The aim of this article is to examine the relationship between government expenditure and economic growth and, through that, determine the optimal size of the government in the Iranian economy within the framework of the Barro growth model. The results indicate that the impact of the variable representing the ratio of government investment expenditure to Gross Domestic Product on the growth rate of GDP per capita is positive at small values and negative at large values. Thus, the hypothesis that the effect of government expenditure on economic growth is positive up to a certain range and negative thereafter is confirmed. In other words, the hypothesis that government expenditure and economic growth have a non-linear relationship is confirmed. Furthermore, the optimal share of government investment expenditure from the Gross National Product is approximately equal to 6.9 percent.
خلاصه ماشینی:
The results indicate that the impact of the ratio of government investment expenditure to Gross Domestic Product (GDP) on the growth rate of GDP per capita is positive at small values and negative at large values.
(refer to page image) Diagram (1) shows that if the production function assumed in the Barro model is of the Cobb-Douglas type, then the effect of increasing relative government expenditure on economic growth will be positive up to a certain stage and negative thereafter.
(Refer to the page image) On the other hand, if high levels of oil revenues mean the expansion of the importance of these revenues in meeting total government expenditures, certain issues and changes in the political and economic structure of the country may occur that provide the grounds for slowing down or even stopping growth; for example, greater dependence of the government budget on oil revenues can reduce the government's reliance on tax revenues and thus reduce the social productive groups.
The above functional form, in addition to considering the non-uniform effect of increasing the ratio of government expenditure to national production on per capita output growth—a positive effect on growth at low values of y/g and a negative effect on growth at high values of this ratio—implicitly accounts for the skewness of the Barro curve.
Given this result, it can be stated that the hypothesis that the share of government investment expenditure in gross national product has a positive effect on the economic growth rate up to a certain range and a negative effect thereafter, is confirmed.
(
, 
, 
)
