Is there any short-run relationship betIen Oil revenue and growth in Iran’s Economy?

A lot of researches show that abundance of natural resources lead toresource curse (Ayadi (2005), Esfahani(2010), Pesaran et.al(2012),)Oil income is the main sources of government expenditures and import ofgoods and services in oil export countries like Iran. Increasing of oil pricesis cause of increases in government expenditure. In this paper analyze theDynamic relationship betIen oil incomes, government expenditure andeconomic growth in Iran’s economy by using VECM.For this purpose annual data from 1978 to 2014 had used. TheResult show that oil income is main resources of government expenditureand effective on economic growth in long run but there is no any finding inshort run. This is back to lagging in government expenditure effectivenessand volatile in oil price.