The Effect of Iranian Government Financial Costs on Private Sector Investments in Sports Products Manufacturing Workshops

The purpose of this study is to investigate the effects of government financial costs, including current expenditures, government capital expenditures, and the governmental budget deficit, on private sector investment in sports products manufacturing workshops. This study specifically utilizes EViews software (version 9) and Microfit (4.1) to apply self-regression and error-correction models on data from the twenty-year period between 1993-2013. The sample population includes all industrial workshops located in the country, in both urban and rural areas. The results of this study indicate that an increase in current government expenditures, by increasing capital expenditures and investment in economic infrastructures, has an inertial effect on private investment in these production units. Consequently, this study supports the position that the adoption of appropriate economic policies by the government and the prevention of budget deficits can stimulate private sector investment in the sports industry and the development of its affiliated businesses.