Volume 12, Issue 2 (2012)                   QJER 2012, 12(2): 1-22 | Back to browse issues page

‎ 20.1001.1.17356768.1391.12.2.7.4

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Piraee K, Noroozi H. Testing the Armey Curve Relationship between Government Size and Economic Growth in Iran A threshold Regression Approach. QJER 2012; 12 (2) :1-22
URL: http://ecor.modares.ac.ir/article-18-6778-en.html
Testing the Armey Curve Relationship between Government Size and Economic Growth in Iran A threshold Regression Approach
Khosrow Piraee * 1, Hayedeh Noroozi2
1- Associate Professor in Economics, Islamic Azad University, Shiraz Branch
2- M.Sc. in Economics. Part Time Faculty Members in kazeroon Elmi karbordi University
Abstract:   (6721 Views)
     The Armey curve demonstrates a non linear relationship between government size and economic growth. This study used threshold regression approach in order to test the Armey curve relationship between government size and economic growth in Iran. Two sector production function proposed by Rati Ram (1986) and three indices of government size are used in this paper. The results reveal that a non linear relationship between all indices of government size and economic growth does not exist in Iran.
Keywords: economic growth, O53, O40, Government size, E62, Armey curve, Threshold regression, Two sector production function JEL Classification: C22
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Received: 2009/05/2 | Accepted: 2011/09/15 | Published: 2012/06/30
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