Impact of Government Size on Employment in Iran

Given that the role of government is crucial in Iran’s economy, therefore,clarifying the role of government size employment can be very important;especially from the aspect that public sector in the economy is considered as acompetitor to the private sector. The aim of this study is to investigate whetherthe government could have had an impact on employment in Iran during 1970-2011. Since identifying short and long-term relationships in this research isimportant, therefore, necessary analysis is performed by ARDL model analysis,using Eviews Software. The results show that government size has a positiveimpact on employment in short-term and long-term.

Keywords:

Government size , ARDL Model , employment , government expenditure