The effect of deficits on economic growth in the Muslim countries of the Persian Gulf (Using spatial econometrics)

mirrahim seyyedhamzeh¹

1) iran Islamic Azad University of Khoy

IOI Code : XYCH-AEBHE
Publication : 3rd International conference on Management , Economics and Humanities(icmeh.org)
Abstract :
    In the process of economic growth and development financing as a key factor of production macroeconomic policiesal plays animportan role in advancing theses issuse are a concern for must develepment countries. Therefore, the aim of this study, the role of government deficits upon economic growth in a selection of Persian Gulf countries, for the period 2014-2000 and the proposed model Vtvarjals Afonso (2011) examine the spatial econometrics. Results of estimates for economic growth as the dependent variable in the model that is intended to indicate positively influence the variables, the index of labor productivity, foreign direct investment, economic growth and macro economic openness negative correlation with the state budget deficit economic growth was confirmed, hence it is necessary for governments to adopt fiscal and monetary policy proper and careful budgeting, good grounds for achieving a balanced budget created and in turn, contributing to economic growth.

Keywords : economic growth spatial econometrics budget deficit the persian gulf states panel data