The effect of economic factors on government and household sports expenses in Iran

Document Type : Original Article

Authors

1 PhD student in sports management, Shomal University, Amol, Iran

2 Assistant professor, Iran University of Art. Tehran, Iran.

3 Ph.D. in Sport Management, Razi University,, Kermanshah, Iran

4 Assistant professor, Roudsar and Amlash Branch, Islamic Azad University, Roudsar, Iran.

10.22034/sms.2024.140532.1291

Abstract

Examining the effect of economic factors on government and household sports expenses, it is possible to obtain how these factors can cause changes and developments in sports expenses. This knowledge helps the government, organizations and households to make better and more efficient decisions in the field of sports expenses and use their resources more optimally. In this research, instead of focusing on traditional and common factors that may have been considered in previous studies, we have focused on economic factors and their impact on sports expenses. This innovative approach to sports and economic factors can contribute to a deeper understanding of sports costs and provide new solutions for optimal management of sports costs. Also, most researches in this field have focused on the effect of social and health factors of sports, but in this research, the effect of expenses on the government and the household is considered. This innovative approach can not only be effective in better understanding the effect of sports expenses on eliminating the deficiencies of the sports industry system, but also in providing more effective strategies to reduce sports-related expenses in order to reduce government expenses and increase access to sports for households. Finally, it can be said that sports, as an important activity in society, brings significant costs, which can have a significant impact on government and household costs. Economic factors are also among the factors affecting sports costs, and the analysis of their impact on these costs is examined in this article. By considering the effect of economic factors, it is possible to make better and more optimal decisions in the field of sports expenses and management of available resources for the government and households. Sports has become very important by playing a role in the economy of countries. Therefore, the macro-economic effects of the sports industry, such as the share of sports in the gross domestic product and gross national product or its contribution in creating employment and health of the general public, have led countries to accurately and regularly measure the effects of sports on their country's economy every year. evaluate Therefore, on the one hand, due to the low share of the sports economy in Iran's economy, and on the other hand, due to the lack of identification of factors affecting the development of the sports economy in Iran and the existence of a research gap in this field, conducting research on the sports economy and how to develop and expand its volume It is important and necessary. Therefore, this research has been done in response to the question, what effect do economic factors have on government and household sports expenses? This research was conducted with the econometric method and the short-term and long-term relationships between the variables were examined from the vector autoregression (var) pattern, instantaneous response functions (IRF), and variance analysis (VD) as well as the accumulation test. The test of existing theories in this field, the relationship between economic factors and government and household sports expenses were analyzed in the period from 1363 to 1400. The software used to validate the data was Eviuz version 12. Household sports expenses, within the scope of the Statistics Center questionnaire, are a part of the expenses of recreation, entertainment and cultural services, as well as a part of the expenses in the procurement and sale of durable household goods in the non-food sector, which include: clothes, shoes, learning various sports, providing tickets, entrance and membership fees, equipment rental, all kinds of balls, billiard and ping pong tables and other sports equipment. Also, in order to access the household sports cost information, the results of the cost and income statistics plan of urban and rural households from 1363 to 1400 were used, and in this way, the average sports cost for an urban and rural household was calculated. Then, by using the available information about the number of urban and rural households in the mentioned years, by multiplying the sports expenses of an urban and rural household by the number of existing households and adding them together, the total consumption of household sports was obtained. It is worth mentioning that the statistics of the number of urban and rural households in the country were not available in all the years in question, and the researcher roughly extracted these statistics using the statistics available in the previous and subsequent years. The country's budget is divided into four sections of public affairs, defense, social and economic affairs, which are divided into other chapters and programs, and physical education and youth affairs are placed in the fifth chapter of social affairs. In order to determine the government's expenses in this sector, first the information available in the budget law of the whole country was checked, but due to the fact that the approved budget and the government's performance in this sector are not the same, as well as the lack of figures related to the performance in some years in the budget law, from the information Available in the economic reports of the Management and Planning Organization were also used. Statistics related to GDP, tax rate, liquidity volume, exchange rate, inflation rate, interest rate, trade balance, unemployment-employment rate and total stock market index were extracted from the time series data of Central Bank of Iran. According to the findings, among the identified economic factors, the GDP factor affects the government's sports expenses, and the GDP factor and the inflation rate affect the household sports expenses. According to the findings, among the identified economic factors, the GDP factor has an impact on the government's sports expenses. . An increase in incomes and economic growth can lead to an increase in export earnings and, as a result, an increase in expenses related to sports and the development of athletes in the country. GDP is affected by investment and consumption within the country. The effect of this gross domestic product on sports expenses of the Iranian government is investigated with two possible solutions. A) Increase in GDP: Increase in GDP can lead to economic growth and increase in domestic incomes. This increase in income can lead to an increase in the government's sports budget, and as a result, the government's sports expenses will increase; b) Decrease in GDP: Decrease in GDP can lead to decrease in domestic incomes and economic recession. In this case, the government's sports budget will also decrease and the government's sports expenses will also decrease. In general, an increase in the inflation rate means an increase in prices, and as a result, it can increase household sports expenses. As a result, buying sports equipment or joining a sports club, holding sports activities or attending sports events may become more expensive. This increase in prices may reduce the purchasing power and motivation of households to spend on sports and recreational activities. For example, if the price of sports equipment such as sports shoes or sports clothes increases due to inflation, households may feel uncomfortable buying these products or may not be able to afford them due to the higher cost. It can be said that the effect of the inflation rate on household sports expenses is strongly dependent on the level and growth rate of inflation. Finally, based on the findings, it is suggested that the government increase financial support for athletes by increasing credits and cooperating with companies and sponsors. This includes setting appropriate salaries for professional athletes, paying for training and equipment, as well as support for travel and competition expenses. This action can reduce the expenses of families to support athletes and provide the possibility for athletes to continue professional sports activities.

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