Analyzing the relationship between the size of government and the efficiency of public expenditures can play a critical role in making optimal decisions aimed at improving the management of public resources. This study investigates the relationship between government size and the efficiency of public expenditures in Iran over the period 2000 to 2023. To this end, the Data Envelopment Analysis (DEA) method is first employed to measure the efficiency of public expenditures. Subsequently, the impact of government size on expenditure efficiency is examined using a regression model. The findings indicate that the efficiency of public expenditures in Iran has varied over the study period, and certain government size indicators have a statistically significant effect on it. Specifically, the hypotheses regarding the relationship between government size and public expenditure efficiency in terms of distribution and economic management indicators are rejected. In contrast, the hypotheses concerning stability and infrastructure indicators are confirmed. Accordingly, it is recommended that policymakers prioritize targeted reforms in the government’s expenditure structure, with a particular focus on stability and infrastructure indicators. Given the complexity of the relationship between government size and the efficiency of public expenditures, further research using more accurate data and advanced methodologies is necessary. It is also suggested that future studies explore other factors influencing public expenditure efficiency. Finally, it should be emphasized that improving the efficiency of public expenditures is a complex and time-consuming process that requires coordinated efforts from all stakeholders, including the government, the private sector, and civil society. With the adoption of appropriate policies and their effective implementation, it is possible to enhance public expenditure efficiency and improve the country’s economic and social conditions.
Farazmand, H., Jamalifard, F., Anvari, E., & Mansouri, S. A. (2025). The Relationship Between Government Size and Public Expenditure Efficiency in Iran. Public Sector Economics Studies, (), -. doi: 10.22126/pse.2025.11828.1185
MLA
Hassan Farazmand; Farzad Jamalifard; Ebrahim Anvari; Seyed Amin Mansouri. "The Relationship Between Government Size and Public Expenditure Efficiency in Iran". Public Sector Economics Studies, , , 2025, -. doi: 10.22126/pse.2025.11828.1185
HARVARD
Farazmand, H., Jamalifard, F., Anvari, E., Mansouri, S. A. (2025). 'The Relationship Between Government Size and Public Expenditure Efficiency in Iran', Public Sector Economics Studies, (), pp. -. doi: 10.22126/pse.2025.11828.1185
VANCOUVER
Farazmand, H., Jamalifard, F., Anvari, E., Mansouri, S. A. The Relationship Between Government Size and Public Expenditure Efficiency in Iran. Public Sector Economics Studies, 2025; (): -. doi: 10.22126/pse.2025.11828.1185
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