Objectives: efficiency in public sector economic development and social welfare has always been regarded economists. Basically one of the important sections of this study to determine the optimal size and optimal state. Many previous studies examined the effect of government size on economic growth result showed disagreement in this issue that is because of kind of
country and location and type of. Government presence in the economy. This article examines the relationship between size of government and human development.
Method: This article kind of analytical and econometric approach has been used for inference, statistics and data has been obtained from resources index World Development (WDI), International Financial Statistic (IFS) and the Human Development Index from the Human Development Report United Nations Development Programmed (UNDP). Econometric method to test the method of generalized dynamic (Dynamic Generalized Method of Moments). Statistical population of this study is the oil countries (include Iran) and non-oil developing countries in the period 1990 to 2006. Based on Heiter (2001) study, in this study took the size of the government separately to share consumption spending and capital spending in GDP.After statistical analysis research variable, the model has been estimated. In this model, the Human Development Index used as the dependent variable and the government consumption spending and capital spending that the state government to gain size as the explanatory variable
Finding: Estimations results show that, in that period, the relationship between
the size of government and human development oil countries and non-oil developing countries is positive relationship between government consumption spending and capital spending
Results: The size of the oil countries is bigger than non-oil countries, but for reasons such as deficiency in these communities function, low quality goods and public sector... Government failed to optimize the impact on human development, impact in developing countries, governments have been more.
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