Document Type : Research Paper

Authors

1 Professor of Economics, University of Tehran

2 Ph.D. Student of Economics, Payame Noor University, Tehran

Abstract

The purpose of this research is to investigate the effect of governmental sports revenues and expenditures on the added value of the sports sector from 1976 to 2013. In order to test the long run relationship between the variables, the method of Johanson cointegration, and in order to estimate the model, the approach of autoregressive distributed lag model (ARDL) have been used. The results show a long run equilibrium relationship between the variables. Findings show that government sports expenditure and GDP have had a positive and significant effect on the added value of sports sector. Moreover, increased oil revenues had a more significant effect on the added value of sports sector than increased tax revenues had. In other words, oil revenues served sports more than tax revenues did. This policy making deficiency has to be addressed in government’s budgeting and programming. Furthermore, government’s sports expenditures have been the main source of changes in sports sector in Iran. This dependence and heavy reliance of sports sector’s added value on government expenditure has to be the concern of policy makers in this field.

Keywords

Main Subjects

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