Examining the resistive economics components in the government revenue and its impact on economic growth

The present study examines the resistive economics components in the government revenue and analyzes its impact on economic growth using annual time series data during 1966 -2013. Variables used in this research include economic growth, the share of government spending in GDP as an indicator for the size of government, the share of oil revenues and taxes to GDP. To examine the short and long term relationship between the variables and economic growth, an Autoregressive Distributed Lags (ARDL) model is used. Dolado, Banerjee and master test confirmed the long-term relationship between variables. The results indicate that the ratio of tax revenues and oil revenues have significant positive short-term and long-term impact on the country's economic growth, but government spending has non-significant positive impact on economic growth. Government spending hasnt significant long-term effect on economic growth. Therefore, government spending may be increased by increasing the salaries of government employees and nor by increasing projects financing. Results confirmed the existence of one of resistive economics components in the government revenue In Iran, But didn’t confirmed the existence of two other components .