The Role of Government Activities in Explaining the Growth Failure of the Oil Exporting Countries - Economic Research Forum (ERF)


In standard growth models such as Barro’s (1990), government size is related to economic growth within an inverted U-curve framework. However, the government’s involvement in the economy – in developing countries in general and in oil exporting countries in specific – is not restricted to budgetary activities. Ownership of enterprises and different forms of interventions in different markets comprise other forms of government activities in these economies. In assessing the impacts of government activities on economic growth one needs to take into account all the roles played by the government. In this paper, we examine the significance of government activities on the economic growth of oil exporting countries, through channels of government expenditure, ownership of enterprises and intervention in the economy. The results indicate that government intervention not only has a significant negative direct impact on economic growth,– which is much larger than a similar case for the rest of the world – but it also weakens the positive effects of the provision of public goods by the government.

Senior Associates

Masoud Nili

Head of Economics Department, Sharif University of Technology

Solmaz Moselhi



There are no Events PAST

Related Publications

Working Papers

Political Determinants of Government Structure and Economic Performance in Turkey since 1950

Ali Akarca

During the last two-thirds of a century, Turkey was ruled by a wide variety of ... read more

Working Papers

Determinants of Fertility and Population Policies in MENA Countries

Mehmet Serkan Tosun and Jingjing Yang

In this study, we examine the relationship between fertility and population policies and other potential ... read more

Working Papers

Economic Voting Under Single-Party and Coalition Governments: Evidence From The Turkish Case

Ali Akarca

Strength of economic voting under single-party and coalition governments is investigated in the case of ... read more