The Impact of Government Efficiency on Economic Growth: The Case Study of Iran

Government having legal and political legitimacy has a high potentiality for economic growth and provision of Social Welfare. It is quality of interference in the economy, in other words its efficiency which is important and highly depends on the level of economic development as the experience of success in newly industrialized Countries and some of oil producing countries show. Therefore an examination of government efficiency is highly important. Particularly its important would be clear if we look at the relationship between performance of bureaucracy and seriousness of Policy making at the macro level. 9t is quite reasonable to expect that inefficient policymakers would lead to in efficient bureaucracy. Therefore the combination of inefficient bureaucracy and wrong policies are harmful for development and n national economic security. In this paper we empirically test this hypothesis for Iran and find that there has been an inverse relation ship between government efficiency and economic growth.