Public and Private Cultural Expenditure on the Economic Growth in Iran

Transcription

1 Public and Private Cultural Expenditure on the Economic Growth in Iran Maysam Musai Full Professor, University of Tehran Mohsen Mehrara Associate Professor, University of Tehran Rabab Aalami MA in Economics, University of Alamme Tabatabi Shiva Parvaei Haredasht MA Student in Social Planning, University of Tehran Abstract 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. 1. Introduction The recent efforts of most countries is improvement of economic situation and economic growth and improvement access. Some researchers believe that the growth and development need enough investment on cultural sector. The investigation about the effect of cultural 212

2 expenditures of public and private sectors on the economic growth can show 1) the effect of this section on the development, 2) the most effective factor on development. In fact, this paper is checking following hypothesis: The investment of private and public sectors increase the economic growth. The effect of private cultural sector on economic growth is more than public cultural sector. 1. Public expenditure Culture in Iran public budget is the important factor in goals achievement and speed to cultural activities of dependant and independent cultural organization to government. For this reason, documents of Plan and Budget, the annual budget law and cultural budget in 1999 were exctracted for achievement of the amount of credit of art and culture sector and were shown in Table 1. Table 1: Credits expenditure of cultural organizations (Milliard Rials) Supreme representative in Iranian Revolutionary Guards Military Hajj and Pilgrimage Endowments and charitable organization The police National Youth Year References: Of the annual budget law 213

3 214 Table 1 continued: Year National Youth The police Endowments and charitable organization Hajj and Pilgrimage Military Supreme representative in Iranian Revolutionary Guards

4 Investigation of cultural budget contribution of most organizations are shown in 13 recent years in -, it can be seen the dedicated budget of Ministry of Culture and Islamic Guidance used for more cultural activities than other organizations. Cultural Heritage and Islamic Propaganda s have also second and third ranking. 28% of the cultural budget is also allocated for other organizations which do cultural activities (plot 1). Plot 1: The cultural budget contribution of each organization from total cultural budget of country References: Adoption of the annual budget law 3. Private fee-cultural (Families fee-cultural) 3-1 Household spending Urban for cultural activities according degree of development of provinces Provinces can be divided to 5 groups completely developed, developed, developing, underdeveloped and completely underdeveloped provinces according their division and based on past Plan and Budget indexes. In urban sector, the budget expenditure of urban families for cultural activities in developing provinces are more than other provinces. Completely developed and completely underdeveloped provinces have the second and third 215

5 ranking of budget expenditure of urban family for cultural activities. At last the developed and completely underdeveloped provinces have the 4 th and 5 th ranking. As can be seen in plot 2, the budget expenditure of urban family for cultural activity has an increasing trend in investigated period, while the maximum of this figure is Rial in developing provinces in and the least of budget expenditure of urban family for cultural activities is Rial in underdeveloped provinces in. Also, this plot shows the variation trend and the intensity trends of budget expenditures of urban family for cultural activities in developing provinces more than other provinces. Plot 2: The variation trend of budget expenditures of urban family for cultural activities as separated by the developing degree of provinces References: Statistical Center of Iran 4. Model Estimation The statistics analyzing model and econometrics related to cultural private and public sectors are production function of Kab-Duglas. One of the important advantage of using this function is calculation of production trend in every used entities of production. The overall shape of this function is: which the Y is output, A is constant number and each of X is one of entities and the exponent of them is their production tendency. Following equation is achieved by taking the logarithm from Equation (1): 216

6 which its coefficient are the production tendency of entities and can estimate by the least squares method. The production function of Kab-duglas is the most famous of production functions in economy. As it has been said one of the important advantage of production function of Kab-Duglas is the directly calculation of the production trend of used entities. The estimation model of effectiveness of public and private sectors investment in cultural section on the economical growth is based on limitation of statistics and economic theory, and the defined structure and form of models are selected and identified after other pattern estimation and their comparison. This pattern has high explanation power and it was widely used in existing information. The aim of effectiveness estimation of public and private sectors investment in cultural section on the economical growth is the measuring degree of sensitivity of economical growth (trending) in comparison with public and private sectors in cultural section. Also it will be discussed that the economic growth of Iran is affected from cultural budget or not. The overall figure of function which is estimated for Iran is: which Y is economic growth in independent variable, X 1 is labours and X 2 is capital, about controlling variables X 3 is the public expenditures sector in culture, X 4 is private expenditures sector in culture and U is the disorder element. Estimation of the mentioned function was performed according to stated goals and statistics limitations. Finally, the ordinary least square (OLS) method was used. With Considering of mentioned variables and defined equation and also the elimination of self correlation of disorder elemnets of equation by Moving average (MA) and Auto Regression patterns, the following result was achieved: Y = * + 13 * * * t.stat: (-1.34) (1.7) (2.45) (2.78) (0.78) SE: (5.1) (1.15) (05) (4) (0.17) R 2 = 0.96 F = 412 The value of R 2 shows that 0.96% of dependent variable changing are explained with the entered explanation variables and this indicated the high explanation power of equation. F shows total regression is maningfoul

7 The coefficient X 1 = 1.96 suggested a percent increasing in using labours and 1.96% increase the economic growth. X 2 = 13 stated increasing in performation and enhanced 13% of economic growth. X 3 = 0.11 is also showed the increment in public sector expenditures in culture section and increase 0.11% of economic growth. But it can be siad as a whole economic growth does not have many sensivity about public sector expenditures changing in culture section. X = 0.13 is demonstrating increasement in private sector expenditures in culture and enhance economic growth nearly 0.13%. 4. Conclusion This paper investigated the effect of culture expenditures of public and private sector on economic growth in Iran and find the most effective factor. At first, this topic was researched based on existing statistical information and information of related to dependent and independent cultural oraganization expenditure which use the public budget and then the effect of culture expenditures of public and private sectors on economic growth in Iran was studied. The results showed the loabours, capital and culture expenditures have positive effect on economic growth, but the production tendecy has the first ranking between entities, it means labours is the most effective factor on economic growth. After that capital and at last the culture expenditure can be effective. In fact, the production trends of culture expenditures of public and private sector is less than prodection trend of capital and labours. But the production trend of private culture expenditure is higher than trend of culture expenditure of public section, it means the effect of culture expenditure of families on economic grwoth is more than culture expenditures of government. Links used: The management and planning organization, annual budget law in Maysam, Musai,, Economics of culture, Tehran: Research Institute of Culture, Art and Communication 218