Authors : M. Sheihaki Tash, T. Khoramabadi and S. Barani Laghab
Abstract: In this research, we examined the effect of trade openness on the role of government in the Iranian economy during the period 1978-2012. The results suggested that there is a positive relationship between trade openness and government size. Perhaps the reason for this is due to the fact that with the increase in trade openness, the government size increases. Also, empirical findings illustrate the role of other variables in determining the size of government. The size of government increases with income, foreign debt, urbanization and investment while it decreases with increased inflation.
M. Sheihaki Tash, T. Khoramabadi and S. Barani Laghab, 2017. The Relationship Between Government Size and Trade Openness in Iran. International Business Management, 11: 375-380.