تحليل ارتباط مخارج دولت و رشد اقتصادي در چارچوب مدل رشد بارو

Analysis of the Relationship between Government Expenditures and Economic Growth in Framework of Barro Growth Model

Government and its size affect on economic performance and has been in the center of attentions in economic discussions for many years. Some theories prevent government from intervention in economic activities and the other believes that government could accelerate growth and development. In the latter context, Barro believes that government expenditures could improve economic growth performance if it can modify externalities, monopolies and problems associated with public goods. The government has to define property rights and establish security in economy to improve public participation and consequently economic growth rate. The result shows that the relationship is nonlinear and optimal share of government investment expenditures to GDP is approximately 9.6 percent.