Mohammad Ibrahim Akbari
Governments in terms of intervention in the economics of classical
government begin and end in centralized planning government. The
relationship between government spending and GDP is also unclear in
economic theories. The statistics and performance of some developed and
developing economies in the last few decades indicate that exceeding the
size of the government required to provide basic services leads to a decline
in GDP. The main purpose of this research is to investigate the effect of
government size on the GDP of Afghanistan based on the data of 1381-
1958. For this purpose, the effects of state size have been investigated using
the vector self-regression (VAR) model. Overall, the results indicate that
the relationship between government size, total spending and GDP has a
positive significant relationship. On the contrary, there is a significant
negative relationship between labor and GDP, one of which is the lack of
skilled labor in Afghanistan.