Uncertainty in the government consumption expenditures and economic growth in Iran

The relationship between economic growth and government share in economy is exposed to contention. The theoretical and practical studies have not acheive the same results.During the recent years, the relation between the government and economic growth has been titleled for a lot of studies. Especially Romer, Lucas and Barro's growth models, addes new points to a realm of discussion.In this paper, the relationship between the government consumption expenditures and economic growth is considered from this perspective that the government consumption expenditures is essential for continue to perform economic activities, but in the other hand, changes in government spending is associated with uncertainity. The results show that uncertainty in the government expenditure has a significant and negative effect on the private investment and economic growth.