The Government and Market Performance in the Process of Iran's Economic Growth

Abstract

In this article with an introduction to market economy versus planned economy, we review different economic doctrines by looking at their roles and efficiency of each one of them to show that the selection and allocation of resources is according to economic efficiency, culture, scarcity to reachness of resources and etc. Then we review the public companies performance and privatization in Iran, and according to data for Iran (1959-2002), we estimate the production- investment elasticity by a growth model and compare them with together. The result of this article shows that there is found a positive effect of private and governmental investment on production growth by statistical methods and tests. Also there is no difference between these two variables. So without structural reforms, we can not change the growth trend in Iran.