The effect of social spending and economic growth and income distribution in Iran
Subject Areas : Financial Economics
GH.R Garaei nejad
1
(استادیار دانشکده اقتصاد و حسابداری دانشگاه آزاد اسلامی واحد تهران مرکز)
حسین Mirzaei
2
(استادیار دانشکده اقتصاد و حسابداری دانشگاه آزاد اسلامی واحد تهران مرکز)
مریم Haji taheri
3
(کارشناس ارشد اقتصاد)
Keywords:
Abstract :
Investigating annual public budgets and its effect on economic growth and income distribution alone may mislead policy makers because the main sector component of budgets are more important in such surveys. In this article we try to investigate social affair budgets contribution on economic growth and income distribution in Iran in 1375-1385. We used time series data and VAR model in order to investigate the relation between economic growth (and income distribution) with whole public budgets, public social affain budgets, literacy rate, capital stock, labor force stock. The results of Impulse Respone Function show that government social budgets have positive and meaningful effects on Iran economic growth and improvement of income distribution. Also, the results of Variance Decomposition show that government social budgets are the most important effective variable on incomes growth and income distribution. Therefore, according to positive effect of social affair budgets on economic growth and income distribution.the authorities and policy makers should pay attention to it and do not let reducing it during financial recession or economic adjustment policies.