This paper uses quadratic regression model to study whether a non-linear relationship between government size and HDI exists in Iran. The results indicate that a nonlinear relationship exists between government size and HDI. We have used “government consumption expenditure share in GDP” as the government size variable. Results indicate that when the government size is smaller than the regime, HDI is promoted under expanding government expenditure, but if the government size is larger than the regime, then the HDI decreases.
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