Public and Private Cultural Expenditure on the Economic Growth in Iran

This paper try to find the effect of public and private cultural expenditure on the economic growth in Iran and determine the most important factor.

Statical analysis and econometrics was performed for investigation of public and private cultural expenditure roles on economic growth using Kab-Daglus productional function and calculated according to Statistical Center of Iran and Central Bank of the Islamic Republic of Iran data.

The results showed that labours, capital and cultural expenditure has positive effect on economic develoment, however the production tendency of labours has fist ranking between entities, it means that manpower is the most effective factor on the economic growth. Capital is the second factor and the cultural expenditure is the last effective factor. In fact, the production tendecy of Public and private sectors of culture is less than production tendecy of capital and labours. And the production tendecy of private sector is larger than public one. It means the effect of cultur expenditure of families on economic growth is more than the government cultural expenditure.