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Title

THE IMPACT OF GLOBALIZATION OF TRADE ON THE GOVERNMENT SIZE OF IRAN

Writers

DADGAR Y.A. | NAZARI R.A.

Pages

 Start Page 1 | End Page 38

Abstract

 The interrelationship between the TRADE GLOBALIZATION and GOVERNMENT SIZE rose after Roderick's study for OECD countries. In this paper, we are going to analyze the impact of TRADE GLOBALIZATION on GOVERNMENT SIZE in IRANIAN ECONOMY. We testified this subject by using the ECONOMIC GROWTH and openness of economy as two basic variables. We used econometric auto regression technique and variance analysis as a part of our methodology. The result of our paper shows that the GOVERNMENT SIZE in Iran during the period in question and on behalf of TRADE GLOBALIZATION has increased. So one policy implication of this study could be that: participating in TRADE GLOBALIZATION, although (other things being equal) does have its own benefits, it would have its own risks and special external costs as well. Hitherto, the policy makers along with going ahead in globalization trend should think to find out some reasonable solutions to combat its indispensable risks and costs.

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